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.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!
Would some of the Oil Geniuses in here be so kind to explain something to this humble and ignorant Argie?Aug 30th, 2014 - 07:51 am 0
Why would ANY of the other actors in the English Pirate Oil Adventure in Malvinas pay ANY money to farm in into Argos?
Considering that Argos Resources oil licence expires at the end of 2015 if the MANDATORY exploration drill is not completed...
All the other companies have to do is wait for the above to happen, let Argos Resources go the Desire Petroleum way and and grab that PL001 licence for free...
As there is oil and gas available you will always have people prepared to invest and yes there will be loss to begin with but those losses will be made up with the future profits from those licenced areas.Aug 30th, 2014 - 10:26 am 0
ThinkAug 30th, 2014 - 10:31 am 0
Because more than one party might want it when it becomes available. So farm in at a cheap cost...the whole company is only worth £30m, and then you get a guaranteed share rather than a competitive chance at the licence.
I would have thought that was obvious, even for you.