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Argos Resources Ltd on Monday reported a double-digit decrease in loss for 2021, as administrative expenses increased. It also announced its intention to extend a licence for the undertaking of new technical work.
Argos Resources is a Falkland-Islands based oil and gas exploration company focused on the North Falkland Basin.
Shares were down 18% at 1.43 pence each on Monday morning in London, following the restoration of trading.
For 2021, Argos saw a total comprehensive loss of $356,000, widened from $299,000 the year before. Administrative expenses went up by 17%to $355,000 from $303,000.
As at December 31, cash reserves stood at $304,000, compared to $438,000 the prior year.
Argos Resources said it has told the Falkland Islands Government of its intention to extend the PL001 licence by a further two years to December 2024. Currently, its PL001 licence expires on December 31 this year. In April, the government had agreed to extend the second term of its PL001 licence from May 1 to December 31.
Chair Ian Thomson said: ‘The company announced last year that a pilot study had been commissioned to reprocess some of the 3D seismic data on Licence PL001. The results of this work have been positive and sufficiently encouraging that the company intends to extend that work across the main prospects identified in Licence PL001. The Company believes this additional work should further de-risk those prospects and enhance its farmout potential.’
Argos Resources said it plans to raise additional capital to support the licence extension. In June, the chair agreed a drawdown facility of £110,000 to provide additional working capital.
The company did not declare a dividend for 2021, unchanged from last year.
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