MercoPress. South Atlantic News Agency

Another Falklands company ‘on schedule’ to drill for oil in the next six months

Argos Resources CEO Ian Thomson, the best seismic data of the North Falkland basin to date

Falkland Islands exploration company Argos Resources released Monday morning interim results and CEO Ian Thomson told investors that the group is on schedule to be ‘drill ready’ in late 2011/early 2012 to begin off-shore exploration activities in the South Atlantic British Territory.

This timing gives Argos an opportunity to contract the Ocean Guardian drilling rig, currently in the Falklands and contracted to neighbouring oil explorer Rockhopper Exploration which is appraising the successful Sea Lion oil discovery.

However Argos said that it will need to raise new capital to finance its drill plans. At present Argos is interpreting 3D seismic data that was gathered, over a 1,415 square kilometre area, earlier this year.

According to Argos it is the best seismic data quality that has been seen in North Falklands Basin to date. The company said it has already mapped several new prospects to its existing prospect inventory, and as interpretation continues it expects to identify further prospects.

”Interpretation of the 3D data is now well advanced” Thomson said.

“The two structural prospects, Zeus and Demeter, have been confirmed and are considered to be robust closures. Mapping of other structural prospects continues and early indications are encouraging that these, too, will be confirmed.

He added: “One of the principal features of the northern part of the North Falkland Basin, in the vicinity of our licence, is the presence of a major delta system. The 3D data quality over the delta is excellent and we are now using that data to identify new stratigraphic prospects.

“Several new prospects and leads which were not evident on the old 2D data have already been mapped from the 3D data. We are very encouraged that additional prospectivity is being identified in our licence area.”

Argos added that through the trading of seismic data with neighbouring explorers – Rockhopper and Desire Petroleum, it has created an excellent data base.

In terms of its financials the junior explorer reported a 557.000 dollars loss for the six months ended June 30 2011.

Argos is an oil and gas exploration company based in the Falkland Islands. The principal asset of the Company is a 100% interest in Production Licence PL001, covering approximately 1126 sq kms in the North Falkland Basin. Based on the 2D seismic survey conducted in 1996, seven prospects and five leads have been identified by Argos in the Licence Area.

The combined potential of the seven prospects is estimated to be 747 million barrels of unrisked recoverable oil, in the most likely case, and up to 1.75 billion barrels in the upside case. The Licence Area adjoins licence PL032 where the Sea Lion oil discovery was made by Rockhopper Exploration plc, who are undertaking a new and extensive drilling campaign in their licence.