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http://www.proactiveinvestors.co.uk/companies/news/19346/argos-resources-to-join-aims-falkland-oil-explorers-19346.html

Argos Resources to join AIMs Falkland oil explorers

Tuesday, July 27, 2010 by Jamie Ashcroft

Argos Resources looks set to join a select group of oil and gas explorers, who have grown a strong following among AIMs investment community. The currently unlisted company owns a number of prospective interests in the North Falkland basin, and with growing investor interest in the region it has raised 22m and it is set to join the AIM market later this week.

The wider Falklands play is made up of two separate basins, the North basin and the South basin. Rockhopper (LON:RKH) and Desire Petroleum (LON:DES) have been drilling their interests in the North basin, and Borders & Southern (LON:BOR) and Falkland Oil & Gas (LON:FOGL) have prospective interests in the South Basin.

The potential for significant oil & gas reserves in the Falkland Islands region has been the subject of speculation for some considerable time ... Investor interest in the Falkland Islands is strong and Argos, with its seven identified prospects and five leads, believes now is a good time to raise the funds. Argos chairman Ian Thomson commented.

Through an institutional placing, arranged by Evolution Securities, the company will issue 70.9m shares to raise gross proceeds of 22m. The placing shares, priced at 31p per share, will represent 32.8% of the companys issued share capital and upon listing Argos will have a market capitalisation of approximately 67m.

The companys shares are expected to join the AIM market, under the symbol ARG, on the 29 July 2010.

The company plans to use the new funds to finance a 3D seismic programme over a number of the prospects identified from an earlier 2D seismic programme.

According to Argos, these prospects have a total un-risked potential of 747m barrels of prospective recoverable resource and up to 1.75bn barrels in the upside case. Subsequently, on completion of the seismic interpretation in 2011, Argos expects to identify drilling locations in the North Basin.

Chairman Thompson highlighted that Recent discoveries in the North Falkland Basin, where Argos has its licence, have not only conclusively proven a working petroleum system and indicated potential significant reserves upside, but have also de-risked further exploration drilling within this northern basin.

Of the four junior explorers currently active in the Falklands, Rockhopper has enjoyed the most success to date, with its Sea Lion discovery being the highlight of Falklands exploration story to date. The Sea Lion 14/10-2 struck oil early in May, and later in June further analysis showed that the well had discovered medium gravity oil.

The analysis confirmed the first contingent resource in the Falklands, and upped the recoverable resource estimates from 170mmbbls (million barrels) to 242mmbbls with significant upside potential.

Previously in March, the first well to be drilled in the Falklands, the Rockhopper-Desire JV Liz 14/19-1 exploration well encountered hydrocarbons, however results from further analysis disappointed.

Last week, Rockhopper spudded the Ernest 26/6-1 exploration well, the third well to be drilled in the North Basin. Earnest is expected to take 30 days to drill down to the 2,400m target depth.

Placing at 31p, charts now added to the header, stock is trading today.

http://www.moneyweek.com/investment-advice/share-tips-argos-resources-falklands-oil-exploration-03108.aspx?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning

http://www.investegate.co.uk/Article.aspx?id=201012290700086307Y

Nothing in Jacinta.


This would be correct based on no migration south to north and also as per Ernest, no local Jurassic source.

No surprise, been expecting this all along.


BUT BUT BUT, this could be fabulous news for ARG - in that migration on the West flank will be same as the East perhaps, and that being south to North...... ?? ;)

The most interesting thing is going to be what the 3D reveals about Lead 1 and Lead 2.

Both of them are big, as big as Sea Lion ?

If Lead 1 or 2 or both of them are progressed to drill ready from the 3D then Argos will be going wild upwards in mid Q3 2011.




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I have made this simple "Oil Map of the North Falklands Basin", its quite easy to follow, simply follow the red arrows to find the oil migration from the green coloured kitchen area......

Hope it helps ;) (tongue in cheek)......



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You will notice ARG and RKH are both going to do seismic over the open area to the North of their licenses, this could be oil filled area's and its no surprise they are doing 3D with a view to taking new license areas in the North of the North....... ;)



TIDMARG

RNS Number : 7431Y

Argos Resources Ltd

30 December 2010

ARGOS RESOURCES LIMITED

("Argos" or "the Company")

Update on 3D Seismic Acquisition Plans

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce that the MV Polarcus Asima seismic vessel is in transit to the Falkland Islands and is expected to arrive within the Company's licence area to commence 3D seismic acquisition in the first half of January 2011.

The Company plans to acquire 3D seismic data over the entire area of Licence PL001, and also intends to acquire additional 3D data in open acreage to the north of the licence. The proposed area over which 3D seismic coverage is planned is shown on a map available to view on the Company website.

The seismic vessel has been contracted in a co-operative arrangement with Rockhopper Exploration plc, who are also participating with Argos in the 3D acquisition in the open acreage.

Commenting on this progress, Ian Thomson, Chairman of Argos, said:

"Argos is on schedule to acquire 3D seismic over our licence area in the austral summer weather window, allowing us the possibility to commence exploration drilling as early as the fourth quarter of 2011.

Extending the 3D programme into open acreage to the north will provide full 3D coverage of the Johnson gas discovery. It will also ensure that any prospects that might extend beyond the licence boundary have full 3D coverage, and it will provide a low cost opportunity to look for additional prospectivity in the northerly continuation of the basin."

Argos 3D seismic survey map now in the header, as below (including where RKH will do new 3D in their area in conjunction with ARG) :



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Managed to add another well priced position in ARG thanks to the nice drop :)

Evolution Securities prefers Rockhopper Exploration and Argos Resources (LON:ARG) to Desire and so do I :)


http://www.proactiveinvestors.co.uk/companies/news/24315/desire-shares-drop-another-20-pct-after-latest-falklands-duster-24315.html

Desire shares drop another 20 pct after latest Falklands duster

Tuesday, January 04, 2011 by Jamie Ashcroft

Desire Petroleum (LON:DES) shares slumped a further 20 percent this morning with yet another failed exploration well being plugged and abandoned.

This morning it revealed that its latest well in the Falklands failed to locate oil or gas in the Dawn prospect, the wells second target.

The 25/5-1 well was designed to test two targets - Dawn and Jacinta - in the North Falkland basin. Last week Desire told investors that the well did not find any hydrocarbons in the Jacinta prospect.

This latest disappointment follows the dour news last month that the companys Rachel North well would also be abandoned.

Desire will now await the results of its seismic survey being carried out in partnership with Rockhopper, which also plans to drill the next two wells in the basin. Later, the rig will return to Desire for the last drilling slot in the current exploration campaign.

David Hart, oil and gas analyst at Westhouse Securities, downgraded his view on Desire in the wake of this mornings announcement.

The analyst cut his rating to hold and reduced his price target to 40 pence - after previously rating the stock an accumulate.

This is further unfortunate news for Desire, following the earlier disappointment with the Rachel prospect and Jacinta just before year end, Hart said in a note to clients.

He added: The ongoing 3D seismic programme may expand this portfolio of prospects but drilling more than one additional well is likely to require further financing as well.

Looking ahead, we will adjust the risk associated with drilling Desires next well based on the results from Rockhoppers (LON:RKH) upcoming wells and the results of the new seismic programme.

Evolution Securities prefers Rockhopper Exploration and Argos Resources (LON:ARG) to Desire.

And the broker pointed out: Desire has sufficient funding for one last well in the northern part of the basin, however, we remain cautious given the track record of well results and acreage and prefer Rockhopper and Argos,

Evolution rates both Rockhopper and Argos buy, with price targets of 400 and 52 pence respectively.

This is the second well in the southern part of the North Falkland Basin and neither has provided much encouragement for the future prospectivity of this area, Evo added.

Until we gain further information on Desires final drilling target we remain cautious on the shares which will, in the near term, be driven by drilling results from Rockhopper.

The Desire share price has been decimated since a shock change in fortune in early December - with the company prematurely proclaiming a new oil discovery when in fact the prospect was water bearing. On the December 6 the stock more than halved in value as it fell from 133.25 to 67.25 pence in one session.

Subsequently the Dawn/ Jaquinta well has led to yet more despair for investors, with the stock falling to 42.5 pence and then 34.5 pence in the wake of the 25/5-1 drilling results.

It has not all been doom and gloom in the Falklands though. The new oil frontier provided one of the AIM markets biggest stories in 2010, with many investors riding the white-knuckle rollercoaster ride.

Rockhopper Explorations Sea Lion discovery gave investors the stand-out result, as it confirmed what investors had long hoped for, however all the other wells drilled in 2010 failed to match it.

Whilst we now know that there is oil beneath the inhospitable waters surrounding the Falkland Islands, there is still much to do in 2011.

Looking back it is clear that 2010 was a hit and miss year in the Falklands. Overall three of the five AIM-listed explorers were actively exploring the Falklands, and between them drilled seven holes and one sidetrack.

Rockhopper and Desire did most of the work, with their operations in the North Falkland Basin taking centre stage. In total the two firms have now drilled six between them.

Meanwhile in the South Basin, Falklands Oil & Gas (LON:FOGL) shares were hit in July after the Toroa well came up dry in July.

Of all the wells drilled only the Sea Lion found potentially commercial quantities of oil.

The New Year will see the groups explore with more than just the drill bit. Rockhopper, Desire and AIM newcomer Argos Resources (LON:ARG) are set to open up a whole catalogue of new targets with a massive seismic programme in the early part of the year.

Back in October the groups agreed to two separate seismic programmes, one between Desire and Rockhopper and another between Argos and Rockhopper.

The first of the programmes got started on 20 December, as the Polarcus Nadia3D seismic vessel arrived in the waters around the islands.

The second programme, which will use the Polarcus Asima vessel, will follow shortly.

Results are expected in early spring for both programmes.

Lets hope 2011 proves a more fruitful year for the companies drilling in the South Atlantic and also for the investors who have staked a lot of money on their success.

Decent day for ARG

http://www.proactiveinvestors.co.uk/companies/news/24324/broker-roundup-desires-petroleum-rockhopper-argos-resources-encore-oil-premier-oil-nautical-petroleum-president-petroleum-24324.html

..........Evolution Securities prefers Rockhopper Exploration and Argos Resources (LON:ARG) to Desire.

And the broker pointed out: Desire has sufficient funding for one last well in the northern part of the basin, however, we remain cautious given the track record of well results and acreage and prefer Rockhopper and Argos,

Evolution rates both Rockhopper and Argos buy, with price targets of 400 and 52 pence respectively.

This is the second well in the southern part of the North Falkland Basin and neither has provided much encouragement for the future prospectivity of this area, Evo added.

Until we gain further information on Desires final drilling target we remain cautious on the shares which will, in the near term, be driven by drilling results from Rockhopper.

Nick Copeman, Oriel Securities, is still keeping some faith in Desire whilst stressing that Rockhopper is a preferable choice.

We retain our HOLD recommendation on Desire and see longer-term potential in the eastern basin margin play once the seismic is complete, but note that the share will clearly underperform today, Copeman said.

Overall we see Rockhopper as the best way to play the North Falklands' exploration programme with a current risked NAV of 496 pence per share..........

12/01/11 FLASH: Desire Petroleum started with hold rating at Jefferies, target price 40p

12/01/11 FLASH: Falkland Oil started with buy rating at Jefferies, target price 225p

12/01/11 FLASH: Rockhopper started with hold rating at Jefferies, target price 435p

12/01/11 FLASH: Argos Resources started with buy rating at Jefferies, target price 75p

Purchased another 20K of these yesterday, building up the stake :)

Decent day, looks like others are seeing the potential value here....... ;)

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 !