New Competent Person's Report Commissioned

RNS Number : 0823X

Argos Resources Ltd

05 February 2013

 



5th February 2013

ARGOS RESOURCES LIMITED

("Argos" or "the Company")

Increase in Prospectivity & New Competent Person's Report Commissioned

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce that it has commissioned a new Competent Person's Report to independently verify the increase in resource potential identified by the Company following receipt and interpretation of final processed 3D seismic data acquired during a survey of the entire licence area between January and May 2011.

A Competent Person's Report, prepared by Senergy, was issued in October 2011 and was based on the interpretation of fast-tracked processed data. Based on the fast-tracked data, 28 prospects were described with 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 final processed version of the 3D seismic data was received by the Company in January 2012 and is of exceptional quality. This data indicates that many of the prospects described in the 2011 Competent Person's Report are larger than reported at that time. In addition, a large number of new prospects and leads have now been identified, and mapped in detail, which do not fall within the scope of the existing Competent Person's Report.

The Company believes that the increase in mapped prospectivity is significant and merits a new Competent Person's Report to independently verify the increase in potential within the licence area. Therefore, Senergy has been commissioned to prepare a new Competent Person's Report which is expected to be available in the second quarter of 2013.

Commenting on this Ian Thomson, Chairman of the Company, said:

"We are delighted with the quality of the final 3D seismic data which indicates that our licence is rich in prospectivity. In addition to increasing the size of many of the prospects described earlier, we have identified over 30 new prospects and leads which we have asked Senergy to evaluate.  We now have a large inventory of prospects, defined by excellent 3D seismic which are in an excellent location immediately adjacent to the large Sea Lion oil discovery.

The Company continues to seek an industry partner for exploration drilling and will issue an update in this regard at the appropriate time."

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])

Priscilla Garcia

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. A Competent Person's report issued in October 2011 described twenty eight prospects in the licence area based on mapping of an early fast-track processed version of the 3D seismic. 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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