PL 001 Licence Extension

RNS Number : 8623B

Argos Resources Ltd

09 April 2013

 



09 April 2013

ARGOS RESOURCES LIMITED

("Argos" or "the Company")

PL 001 Licence Extension

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, has received notification that the Falkland Islands Government (FIG) has extended the second term of the Company's PL001 Licence by one year, to 25 November 2016, with no additional work commitments.

The extension follows changes to the licensing conditions introduced by FIG in 2012 and is in return for having acquired over 1000 sq kms of 3D seismic within the licence area.

The Company has a commitment to drill one exploration well within the licence area by the end of the second term of the licence after which a third exploration term of 10 years is available.

Commenting on the extension, Mr Ian Thomson, Chairman of Argos, said:

"We are very pleased that the Falkland Island Government has awarded a licence extension in recognition of the investment we have made in the licence area, and this reflects the collaborative approach we continue to enjoy with the government. While the extension is welcome, it remains our intention to commence exploration drilling at the earliest possible date."

For further information:

Argos Resources Ltd ([phone])

www.argosresources.com 

Ian Thomson, Chairman

John Hogan, Managing Director

Cenkos Securities plc

Jon Fitzpatrick ([phone])

Neil McDonald ([phone])

Citigate Dewe Rogerson ([phone])

Martin Jackson

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 percent interest in production licence PL001 covering an area of approximately 1,126 sq kms 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 28 prospects based on mapping of an early fast-track processed version of the seismic data. These prospects have a total unrisked potential of 2.107 billion barrels of prospective recoverable resource in the most likely case and up to 7.301 billion barrels in the upside case.

Mapping of the final processed seismic data has identified more than 30 new prospects and leads not included in the earlier Competent Person's Report. The prospective resource potential in the licence area is expected to increase significantly as a consequence of this, and a new Competent Person's Report has been commissioned to determine this change.

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.

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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