Falkland Islands Argos Resources Ltd posted Friday a narrowed pre-tax loss for the first half, saying it is more confident on the outlook for its farm-out efforts following the recent contracting of the Eirik Raude deep water rig by Noble Energy Inc and Premier Oil PLC.
The pre-tax loss for the Falklands-focused oil explorer came in at 653,000 dollars for the six months to June 30, reduced from the 1.2 million loss posted a year earlier.
The company said its farm-out campaign has been strengthened by the contracting of the Eirik Raude deep water rig by Noble Energy and Premier Oil, which has provided some clarity on a 2015 drilling program and further increased confidence in a farm-out by Argos.
In addition, the company said an updated competent person's report - showing 52 prospects, 40 leads, and estimates of un-risked prospective resources of 3.1 billion barrels of oil - also has underpinned its farm-out program.
The company has been focusing on attracting partners to its PL001 production licence in the Falkland Islands and said a number of companies have expressed an interest in the licence.
I am hopeful that the recent contracting of the Eirik Raude deep-water drilling rig and the clarity that brings on a 2015 drilling timetable around the Falkland Islands now will allow us to conclude our own farm-out on satisfactory terms for our shareholders, said Argos Chairman Ian Thomson.
Negotiations are currently underway with potential partners to secure funding for drilling, Thomson added. Argos Resources shares were down 1.4% to 11.83 pence on Friday.