Argos Resources Ltd is an AIM quoted oil and gas exploration company based in the Falkland Islands, ideally placed to make the most of an exciting new oil province heading towards production.

Argos holds a 100% interest in Licence PL001, which covers approximately 1,126 square kilometres in the North Falkland Basin. The licence boundary is just 3km from the Sea Lion oil field, a significant discovery on course for production start-up in 2017.

New 3D seismic data of excellent quality was acquired over the entire licence area in 2011 and has identified 52 prospects with a best estimate of 3,083 million barrels of prospective recoverable resource, and a high estimate of 10,412 million barrels. 40 additional leads have been identified which are not included in the above resource figures and which are the subject of ongoing work.

The Company is now seeking an exploration partner to drill a selection of key prospects to unlock the value of this exciting opportunity.

http://www.argosresources.com/
http://www.falklands-oil.com/
http://www.desireplc.co.uk/
http://www.rockhopperexploration.co.uk/

http://www.argosresources.com/docs/AIM-Admission-Document.pdf

The Opportunity
•Proven commercial petroleum system
•52 oil prospects, defined by excellent quality 3D seismic data
•CPR attributes 3.1 billion barrels of prospective recoverable resource to the prospects, with upside of 10.4 billion barrels
•40 additional leads identified and under review
•Several prospects similar to Sea Lion
•Prospects have been de-risked by the Sea Lion discovery
•Potential extension of Johnson gas discovery into licence
•Licence 100% owned by Argos Resources
•Benign operating environment
•Stable Government with a competitive tax regime

good jump

Wednesday, September 28th 2011 - 22:18 UTC

http://en.mercopress.com/2011/09/28/falklands-argos-needs-additional-capital-for-drilling-set-to-begin-at-end-of-year

Falklands Argos needs additional capital for drilling set to begin at end of year

Falklands based Argos Resources expects to drill its first well on license PL001 in the North Falkland basin in late-2011 or early-2012, using the semi submersible rig Ocean Guardian, currently operating in the Islands waters.
PrintShareComment


Chairman Ian Thomson, 3D data quality is excellent


However, Chairman Ian Thomson admits that the company will need additional capital to finance drilling, and the board is reviewing its options.
Interpretation of recently acquired 3D data is well advanced, Thomson said. The two structural prospects, Zeus and Demeter, have been confirmed and are considered to be robust closures. Mapping of other structural prospects continues and early indications are encouraging that these, too, will be confirmed.
One of the main features of the northern part of the basin, close to PL001, he added, is the presence of a major delta system.
The 3D data quality over the delta is excellent and we are now using that data to identify new stratigraphic prospects.
Several new prospects and leads which were not evident on the old 2D data [from 1996] have already been mapped from the 3D data. We are very encouraged that additional prospectivity is being identified in our license area, said Chairman Thomson.
Argos licence area adjoins licence areas being explored by Rockhopper and Desire, who between them are involved in a multi well drilling campaign in the North Falkland Basin in 2010 and 2011.

AGM tom so one to watch on Friday to see if the FI buy in to the story.

http://moneyam.uk-wire.com/cgi-bin/articles/201110140700101581Q.html

CPR out, well worth a read still no details on funding as of yet


Highlights



New prospective resource estimate of 2,107mmbo

The six structural prospects mapped from earlier 2D seismic data confirmed

22 new stratigraphic prospects identified, creating significant new opportunities

Good quality sandstones predicted, with several prospects, including Rhea, exhibiting similar seismic anomalies to those seen at Sea Lion

Progress made towards being drill ready in late 2011 / early 2012

Various financing options to fund drilling costs are being actively considered

Argos Resources eyes Falklands prospects containing 2.1 billion barrels of oil
8:02 am by Jamie Ashcroft
http://bit.ly/pOp3fT

the CPR defines a new prospective resource for the companys acreage with best estimates of 2.1 billion barrels of oil.

Falklands oil explorer Argos Resources (LON:ARG) today unveiled its hotly anticipated competent persons report following the 3D seismic programme it completed earlier this year.
The CPR confirms that the 3D seismic was very successful. It confirmed six structural prospects, which were previously mapped in 2D seismic, and identified twenty two new ones. The group said that several prospects exhibit similar seismic anomalies to those seen nearby at Rockhopper Explorations Sea Lion oil discovery.
Importantly the CPR defines a new prospective resource for the companys acreage with best estimates of 2.1 billion barrels of oil. This represents a 182 per cent increase from the past estimate of 747 barrels of oil.
The high estimate sees 7.3 billion barrels of oil on the license.
At the time of planning the 3D seismic programme Senergy (the groups consultant) estimated that some 522 million barrels of new prospects might be identified, said chairman Ian Thompson.
In fact we have identified almost three times that level of prospectivity, with additional leads still being mapped. We are therefore delighted that the seismic programme has proven to be so successful.
Following the release of the CPR Argos reiterated its desire to join the current drilling campaign in the Falklands during late 2011 or early 2012. It said that various financing options are being actively considered to fund the drilling costs.
Argos also explained that preparations for drilling are continuing apace. These preparations include gaining approval for an environmental impact statement and purchasing three wellhead assembly packages which are held in storage to avoid long lead-order item delays.
The 3D seismic programme was completed in April. It covered 1,415 square kilometres, spanning the entire licence area as well as a halo outside the licence boundaries, and tie-ins to key wells.
Argos subsequently had the entire data package fast-tracked and it was very pleased with the results.
"The 3D seismic we have obtained is the best quality data seen in the (North Falkland) basin to date, Thompson said.
This has allowed us to map with confidence numerous new stratigraphic prospects associated with the early Cretaceous delta system that is a principal feature of the licence area and which is intimately associated with proven oil source rocks of the same age.
We have also confirmed as robust the six structural prospects identified from earlier 2D seismic data.
He added: Identifying new stratigraphic prospects which were not evident on the old 2D seismic was one of the key objectives in acquiring 3D seismic data.
This objective has been more than achieved, with the results reported above of 22 new stratigraphic prospects considerably exceeding expectations.

Argos explained that its prospects fall broadly into two groups. The first group is a combination of structural and stratigraphic traps, while the other group is made up of fault bounded and four-way dip closed structural traps, with closures at several horizons providing multiple reservoir targets.
In the first group 22 new prospects have been mapped, four of which are within the previously identified Boreas prospect area. The other 18 prospects were not apparent prior to the 3D data being acquired, it said.
These prospects are expected to contain good quality sandstone reservoirs with several, including Rhea, exhibiting similar seismic anomalies to those seen at the Sea Lion oil discovery, it added.
In four areas a number of prospects are vertically stacked, meaning that there is potential to drill multiple prospects within a single well. Argos explained that in these four areas there is a stacked Best Estimate potential of 216, 118, 800 and 69 million barrels of oil respectively.
In all the best estimate net un-risked potentially recoverable prospective resource totals 1.5 billion barrels for group one.
Meanwhile the second group of prospects, the structural traps, were confirmed by the 3D seismic. In the new CPR these prospects are estimated to contain 599 million barrels of oil.
Argos said that the final processed data is due to be received around year-end, and it expects to further improvements in data quality. This will help the groups prepare seismic modelling studies.
Todays resource estimates exclude the Johnson gas discovery which, according to Argos, appears to extend into the licence from Rockhoppers adjacent acreage. It said that it plans to model potential reservoir sands within the Johnson gas discovery in the future.

Got a smallish punt on this one and will wait until they spud a well....

Smallish???????.........what are you doing rf? If these boys hit oil then we will be rich!!!! Another fledgling RKH in the making! Just your type of high risk stock I would have thought! :o)

Well it is....I'm in but very small % when compared to my RKH %....this is a pure gamble 100%....it might turn out like DES...and then it might not.....might increase my holding...

Harry a lot smaller prospects than RKH but i wonder if the oil all went North....hence Argos could be a good bet or punt

Don't forget that RKH was 35p if I remember when they struck the sealion prospect...and was dropping all the time...so this is very risky with this 100% pure explorer...the johnson gas prospect might not be commercial.....

They have it down as a discovery RF,30% of it is in Argos block.......its huge and i mean huge.

RKH have some big prospect in there blocks Argos a lot smaller.

Well.....bought some more ARG.....now no longer a punt but a serious small investment......

You are familiar with the ;o) icon I trust, rf? I hope you won't hold me accountable if this should end in a duster!!!

It will be your fault Harrycat (:))

This is worth 15-20p.

This is worth 25p ( 24.75 / 25.25p ) now after dropping to 24.25p

managed to get some at 24.75p, as MMs will not allow online at offer 24.50p

Level 2 of 4 v 1

RECA the only one at Offer since earlier, rising the price by 0.25p and yet the next MM is at 25.75p

Mistimed my buy here.....it's a 'orrible sp 'arry.....

Its been bouncing from 20p to 30p for ages so been buying near 20s selling near 30s so hoping for a little more drop before i buy again.

Will hold at some point just waiting for funding news then we might get an idea on how many holes they may drill.

Argos Resources Hogan confident in Sea Lion lookalike prospects after pivotal report
1:00 pm by Jamie Ashcroft
http://bit.ly/plr9gL

The CPR confirms that the licence hosts prospects that are similar to Rockhoppers Sea Lion discovery
Argos Resources (LON:ARG) managing director John Hogan has declared himself "delighted" with the results of the recent independent report on its Falklands acreage which was far better than he or the team expected.
The report gave the group a major uplift in estimated resources, which rose more than 180 per cent to 2.1 billion barrels of oil, and uncovered 22 new exploration prospects. It follows a busy summer of seismic exploration for the firm.

Importantly Hogan highlights that, as expected, the CPR confirms that the licence hosts prospects that are similar to Rockhopper Explorations (LON:RKH) Sea Lion discovery, which is on the neighbouring licence.

The most notable of these prospects is Rhea, a 103 million barrel target that is likely the first to be drilled by Argos.

Speaking with Proactive Investors Hogan explained that the latest interpretation of 3D seismic and Rockhoppers continued appraisal success very much backs up the groups previous expectations of a Sea Lion lookalike on the Argos licence.

In fact following a data sharing exercise with its neighbour Hogan and his team are now more confident than ever about the potential Sea Lion lookalike.

"We've got all Rockhoppers seismic data, Hogan said.

"We have their information on Sea Lion and we can make our own assessments and make comparisons between the Sea Lion discovery and our new prospects. We can see what they are drilling, what looks like on the 3D seismic and use that on our respective prospects.

"Rhea has a lot of the characteristics that the Sea Lion field displays. But we've got other prospects that do that too, I'm pleased to say.

The Sea Lion Field was major a breakthrough not just for Rockhopper, but also all those companies operating in the South Atlantic. It has continued to prove up and expand is oil resources, and in just 18 months it has taken the discovery to the verge of the development phase.

Indeed last month Rockhopper unveiled a US$2 billion plans to produce the Falklands first oil by 2016. It is currently preparing to drill its eighth well on the Sea Lion field.

"We are pleased to see Rockhopper continuing the drilling programme on Sea Lion, which just keeps getting bigger and bigger, Hogan added.

For a much smaller company like Argos having such a successful peer working nearby has been a real bonus as it has helped capture the imagination of investors and has stoked up the excitement among AIMs speculators.

"Good results from Rockhopper draws industry and investor eyes onto what's going on in the Falklands and we all benefit from that attention.

Aside from the obvious Rockhoppers continued success has had another important benefit for Argos. Importantly it has meant that the Ocean Guardian rig has remained in the isolated waters of the South Atlantic.

Because of that Argos is now preparing for its own drilling programme which is expected to get underway towards the tail-end of this year or early next year. However before that Argos must first get the financial backing to support its ambitions.

Taking the temperature of investor sentiment on the ubiquitous internet bulletin boards and forums it seems that this funding issue is a lingering concern which has somewhat overshadowed the better-than expected CPR result.

A farm-out deal is one potential funding option being mooted, by some investors, as a potential means to bring in cash to cover the initial costs of drilling. It is also a theory seemingly reflected by Evolution Securities analyst Keith Morris.

The analyst, which sees Argos as a buy, has a 79p a share price target for the stock. And in a note to clients on Friday he said that his valuation assumes that Argos will farm out a 50 per cent stake in the licence and be carried for the costs of drilling the two lowest risk prospects, Rhea and the 118 million barrel Poseidon prospect.

While not ruling anything out, Hogan distanced the company from the plans that could potentially be construed from Evolutions assessment.

He explained: "(A farm-in) was merely the analysts chosen method of putting a valuation on the acreage that other analysts and the industry would recognise.

"It is not being led by any particular route that weve mentioned to him. It's not because we were telling the analyst that was what we're planning or anything like that.

"At the moment we are just keeping our options open.

While investors await some breaking news on the financing front, eyes will no doubt be fixed on the ongoing developments in the Falklands where things tend to move very quickly indeed.

"There has been a lot of good news from the Falklands of late from Rockhopper, Desire and ourselves, Hogan surmised. "There is a lot going on and I don't want to tempt fate by guessing what might happen next."

I have a modest holding in ARG, rf, and am happy to hold whilst they drill. I prefer to invest here & hold rather than trade them, as potential is good and I have a nasty habit of missing out by not having cash available at the right time. Will try and invest more when the rig is mobilised.