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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 !

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.