MercoPress. South Atlantic News Agency

Argos confirms it is closer to starting an oil drilling campaign in Falklands’ waters

Chairman Ian Thompson says Argos has comprehensive 3D seismic survey

Argos Resources is a step closer to starting a drill campaign in Falkland Islands waters, where it is targeting a high priority area adjacent to Rockhopper’s Sea Lion discovery.

Tuesday morning Argos Resources told investors that it had submitted an Environment Impact Statement (EIS), which has assessed the potential impact of exploration drilling on the environment within the licence acreage and along the adjacent coastlines.

The Falkland Island Government will carry out a statutory 42 day period of public consultation.

Argos chairman Ian Thompson said: “The submission of an Environmental Impact Statement and its acceptance by the Falkland Island Government is a pre-drilling requirement and, upon approval by the Government, will take the Company another step closer towards being ready for drilling operations in the North Falkland Basin in Q4 2011 or early 2012.”
In last week’s annual results statement Thompson said the group was excited about the potential of its Falklands acreage and it confirmed that it would require more cash to drill the area.

It recently completed a comprehensive 3D seismic survey of the high PL0001 area next to Rockhopper Exploration’s Sea Lion field in the North Falkland Basin, which was deemed commercial.

The survey began on the Argos licence area in January and the data for high priority area will be fast tracked for release mid-year. Subsequently Argos plans to start drilling with the ‘Ocean Guardian’ rig.

The ‘Ocean Guardian’ is currently being used by Rockhopper on the adjacent licence area where it is drilling appraisal wells.

At the end of April when presenting Argos Resources financial results for 2010 highlighted the successful raising or £ 22 million gross on 29 July and the Sea Lion oil discovery which is adjacent to the company’s licence PL032.

It also mentioned the contracting of MV Polarcus Asima in late 2010 to undertake a 3D seismic survey over the entire licence plus open acreage to the north to cover possible extension of Johnson structure and to look for new prospects.

”The recent Sea Lion oil discovery, just a few kilometres from our licence boundary, demonstrates the potential of the emerging North Falkland Basin and we are excited by the prospect of making similar discoveries on our own acreage” said Ian Thomson chairman of Argos.

He added that “we have recently acquired state of the art 3D seismic data over our licence, which is now being processed, and the next step is its interpretation and prospect ranking ahead of scheduling drilling in late 2011 or early 2012”.