Holdings in Company

RNS Number : 7482M

Argos Resources Ltd

21 September 2012

 



Argos Resources Limited

("Argos" or "the Company")

Holdings in the Company

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, announces that, on 20 September 2012, a fund managed by Salida Capital International ("Salida") acquired 6,000,000 ordinary shares in the Company ("Ordinary Shares") from Argos Georgia Ltd ("Argos Georgia") at a price of 22 pence per Ordinary Share.

Following the transaction:

~    Salida is interested in a total of 7,200,000 Ordinary Shares, representing 3.31% of the issued share capital of the Company; and

~    Argos Georgia is interested in a total of 20,078,850 Ordinary Shares, representing 9.24% of the issued share capital of the Company.

Ian Thomson, Executive Chairman of the Company, has a 46.46% interest in the issued share capital of Argos Georgia.  The aggregate of Ian Thomson's and Argos Georgia's interests in the capital of the Company is 42,290,463 Ordinary Shares, representing 19.46% of the issued share capital of the Company.

Ian Thomson, Executive Chairman of the Company, commented:

"We are pleased to welcome Salida as a shareholder in the Company. Argos Georgia took the decision to dispose of a limited portion of its holding in order to further aid liquidity and broaden the shareholder base in response to substantial recent institutional demand."

For further information:

Argos Resources Limited             

Ian Thomson, Chairman                           ([phone])

John Hogan, Managing Director

www.argosresources.com

Cenkos Securities plc

Jon Fitzpatrick                                   ([phone])

Neil McDonald                                  ([phone])

Citigate Dewe Rogerson              

Martin Jackson                                  ([phone])

Kate Lehane

Notes to Editors

Argos Resources is an oil and gas exploration company listed on AIM and based in the Falkland Islands. The Company's principal asset is a 100 per cent interest in production licence PL001 covering an area of approximately 1,126 square kilometres in the North Falkland Basin.

A 3D seismic survey was acquired in early 2011 covering the entire licence area. The quality of the seismic data acquired is excellent and clearly demonstrates a material increase in the prospectivity of the licence over that which could be identified from the older 2D seismic data. Twenty eight prospects have been identified to date by Argos in the licence area. These prospects have a total unrisked potential of 2.1 billion barrels of prospective recoverable resource in the most likely case and up to 7.3 billion barrels in the upside case. The licence area adjoins licences PL032 and PL004b. The Sea Lion oil discovery was made in licence PL032 in 2010 and a total of nine wells have now been drilled to complete the appraisal of this large discovery. An extension of the Sea Lion field into licence PL004b was proven by drilling in late 2011 and additional shallower stacked oil and gas accumulations above the Sea Lion field have also been proven in the Casper, Casper South and Beverley discoveries.

The presence of gas in these latest discoveries, together with gas in the Johnson discovery and gas condensate in the Liz discovery to the south points to a second deeper source rock generating commercial volumes of hydrocarbons into the basin, in addition to the Lower Cretaceous oil source rock.

The Company has a strong and experienced management team with extensive experience in both the oil and gas industry and the Falkland Islands.

This statement has been approved by John Hogan, Managing Director of Argos Resources and a qualified geologist with over 35 years of experience in the petroleum industry.

 

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