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Where the 3D is being done. Page 11 of the presentation below :

http://www.polarcus.com/assets/0000/1209/Polarcus_Company_Presentation_SEB_12_Jan.pdf


Here is the blow up of the chart on page 11 :

Defining moment the results of the 3D for ARG.

Lead 1 and Lead 2 could be firmed up as Sea Lion equivalents, but bigger !

Overlaid the 3D map from Polarcus with the NFB prospect/license map and you can now see where the 3D is being done in relation to the targets.




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It would be interesting to know who is paying for the 3D up north outside the present license area's.

Is it split 50/50 RKH or ARG or are RKH paying for that 100%, and obviously keeping the results very much to themselves for future reference/license applications ?

Updated Falklands Government wesbite for mineral resources - better layout.

http://www.falklands-oil.com/

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Roll on the 3D...... Lead 1 and Lead 2, a couple of Sea Lions ?


http://www.proactiveinvestors.co.uk/companies/news/21265/falklands-explorer-argos-is-hunting-for-another-sea-lion-21265.html

Falklands Explorer Argos is Hunting for Another Sea Lion

Wednesday, September 22, 2010 by Ian Lyall

Believe it or not, there are certain benefits to coming last. In the case of Argos Resources (LON:ARG), they are very tangible, as it bids to prove up some potentially major reserves in the North Falkland Basin.

It is following in the wake of Desire Petroleum (LON:DES) and Rockhopper Exploration (LON:RKH), which caused a stir earlier this year with the discovery of the Sea Lion field, which could turn out to be a world class find.

Argos will take two dimensional seismic surveys shot in the 1990s and replace and reinterpret them using state-of-the-art 3D analysis.

This is exactly what Rockhopper did with such spectacular effect when it found Sea Lion. So Argos is happy to do the 3D seismic works.

It also has the comfort of knowing there is oil and gas in the vicinity thanks to the drilling programme of the pioneering Falklands pair.

In effect the more work its rivals do, the more they de-risk Argos's licence area, says managing director John Hogan.

Thanks to Rockhopper and Sea Lion we now know that were in a proven working hydrocarbon province. There is potentially big oil here, he told Proactive Investors.

Rockhopper reported a 240million barrels discovery, and Sea Lion could be as big as 670 million. Thats a world class oil field.

We are in a privileged position we think, that by coming behind everybody else, Rockhopper and Desire are de-risking the proposition for us.

Theyve both shot 3D seismic data and have demonstrated that 3D data improves data quality, allows you to map with more confidence, and Rockhopper have found oil based on their 3D data so we are just following them.

And between Rockhopper and Desire they are drilling up to eight exploration wells.

Five of them are in a semi-circle around the Argos licence, Hogan reveals.

And by the time the company has shot and interpreted its 3D data, Rockhopper and Desires drilling campaign will have ended.

That puts us in a great position to high-grade our own prospects and decide where we want to drill first, Hogan adds.

Last year the company re-processed 2D seismic data acquired as part of a 1998 drilling campaign and identified seven prospects and five leads.

They have a reserve potential of 747 million barrels with an upside case of 1.75 billion barrels.

Possibly the most exciting prospect on the licence area is Boreas, which Hogan thinks could be a mirror image of Sea Lion.

We think Boreas is sitting on the western dip slope of the basin, where Sea Lion sits on the eastern dip slope," he explains. But were really pushing the seismic to its limits to handle that, which is why we need 3D.

The area already contains a significant gas find in the Johnson field, which straddles the Rockhopper and Argos licence areas.

It was discovered in 1998 by Shell and was abandonded because no-one was interested in gas in remote areas at a time of historically low oil prices. The most recent analysis suggests there could be as much as 8 trillion cubic feet of natural gas in Johnson in the upside case.

The oil majors campaign in the North Falkland Basin also uncovered the presence of a rich source rock for oil, which makes it all the more incredible it turned its back on the area.

It is over 1000 metres thick in places, Hogan says. Its described by Shell as one of the richest source rocks for oil theyve ever examined and the second richest in the world.

Its got twice the organic carbon content of the organic rich shales in the North Sea which produced all of the North Sea oil.

And the work that we did, Shell did and the British Geological survey did indicated that at depth this source rock was mature for oil generation and that over 70billion barrels of oil had been generated in the basin.

And of course the Sea L ion discovery is the first discovery now sourced by this mature source rock.

And what happened in 1998 was that all the wells except the Shell well which made the gas discovery tested only shallow prospects. No one drilled deep in the basin. No one tested valid deep prospects.

We now know weve got a rich oil source rock and no one had drilled prospects in situations where this source rock could have charged deep prospects.

And with that lesson thats been the objective of the 2010 drilling campaign.

The Argos group, which was incorporated in the Falklands in 1995, owns 100 per cent of the PL001 licence in the Northern Basin.

However it waited until July this year to list on the stock exchange. It raised 22 million from a placing of shares enough cash to finance the 3D seismic programme.

The plan is to start the seismic acquisition later this year, in the last quarter, probably in November or December, Hogan reveals.

And thats about a 30 60 day programme for us. We then go ahead and process it and go into interpretation. As parts of the data became available we will start the processing and interpretation so we will build up an early picture of the geology and prospects, even as the seismic data is being acquired.

That would get us to the point in quarter three next year where we have a high-graded prospect inventory.

By then we would also have completed the exploration well designs and environmental impact statements in readiness for drilling.

So we would be ready to have a drilling campaign starting at the end of 2011 and into 2012. That is our forward plan for this.

There are advantages to being a Falklands based company, not least the tax regime: the production royalty is only 9 per cent, while corporation tax is a competitive 26 per cent.

So in terms of net back value to the operator this is top quartile in worldwide return, Hogan explains.

My rule of thumb is, one Falklands barrel is worth two North Sea barrels, and one Falklands barrel is worth three Norwegian North Sea barrels.

The rate of tax in Norway is 78 per cent. So when you find barrels of oil in the Falklands, these are very valuable barrels to have.

Interesting that ARG and RKH (and des) are all getting more buying today and rising.

Interesting that ARG and RKH (and des) are all getting more buying today and rising.

Strong performance today.


L2 now 2 v 2 @ 45.5 / 47

Bought a few of these just in case RKH hit lucky any time soon!

I think ARG could bounce strongly on a RKH strike. From what I have seen nobody is shorting RKH - far too much risk of a massive swing.

From what I see people have been shorting ARG as the downside is not as much and it makes it a safer short on RKH news.

This means should RKH strike then ARG will bounce strongly up as shorts close.

100K buy order placed at 45.5p

Someone wants stock.

Bid 39p, offer 57p!!! That can't be right, surely?

Price being walked down for fund raising perhaps ?

Perking up again.

News today, look excited do they not.

News in July and drilling late 2011 :) !

Looks to me like ARG and RKH are sat on all the oil............. tough luck DES.

Given the choice, in July fast track 3D comes out from ARG and DES.

Both need to raise money to drill in late 2011.


ARG have the a north NFB license. 2 massive Sea Lion lookalike leads. No tarred reputation.

DES have a reputation in tatters and all their best prospect drilled and failed.


Now, where will people be putting their money ? I think any DES fund raising is going to be 10p levels if they can get one away - they may end up sitting and waiting now until 2012 before raising money, hoping RKH and ARG and BOR and FOGL all find more and more oil which makes it easier for them to then raise money again - and the longer time before fund raising the more time for people to forget..........

Ninky failure is probably good for ARG on the whole........ if you want to look for positives for others.

I really do hope Sam Moody of RKH is in touch with ARG now about farming into the ARG license... allowing ARG to raise less money and get their top 2 leads drilled with much less dilution.

Everything hinges on the new 3D seismic which if you read ARG and RKH RNS then both are getting them fast tracked ready for July.

RKH have the know how now to really be able to say what the seismic means in real life.

That would be an enormous help to ARG.



So I really do think that RKH could well be farming into license PL001 that is currently 100% ARG.

Maybe around late July/August time.

21st April rig status report for the Ocean Guardian shows 3 firm wells (that the coming 3 RKH appraisals) and 10 prices options for the new contract in effect once DES P&A Ninky.

So of the 10 options one would expect ARG to raise money for at least 2 wells, if not 3, and drill them in perhaps August/Sept time along with some more RKH wells and then with a couple of options for DES IF they can raise some money. If they cannot then it might be ARG or RKH again.


http://www.diamondoffshore.com/ourFleet/rigStatus.php

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2010 Annual Report out.

http://www.argosresources.com/docs/ARG-2010-Annual-Report.pdf

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