MercoPress. South Atlantic News Agency

Falklands extends duration of Rockhopper and Argos Resources oil exploration licenses

Argos Resources has a commitment to drill one exploration well within the license area by the end of the second term of the license.

Rockhopper Exploration PLC said on Monday that the Falkland Islands government has extended the duration of the PL032 Discovery Area License until May 1, 2021, with no additional license commitments.

This follows a similar decision by FIG last week regarding Argos Resources Limited, involved in the North Falkland Basin, and referred to its PL001 License which was also extended by eighteen months. The current second phase of the license expires in November 2019

The license, in which Rockhopper has a 40% working interest (Premier Oil holds 60%) was previously due to expire on April 15, 2020. The PL032 license is located in the offshore North Falkland basin, and contains the Sea Lion field.

The brief release from Argos Resources Limited said the exploration company was pleased to announce that the Falkland Islands Government has extended the second term of the Company's PL001 License by eighteen months, to 1 May 2021, with no additional work commitments.

The Company has a commitment to drill one exploration well within the license area by the end of the second term of the license.

Ian Thomson, CEO of Argos said “We are very pleased that the Falkland Islands Government has awarded a license extension. This reflects the collaborative approach we seek to maintain with the government. While the extension is welcome, it remains our intention to secure partners and commence exploration drilling as soon as possible.”

Argos Resources is an oil and gas exploration company listed on AIM and based in the Falkland Islands. The Company's principal asset is a 100 per cent interest in production license PL001 covering an area of approximately 1,126 square kilometers in the North Falkland Basin.

A 3D seismic survey has been acquired over the entire license area. The quality of the seismic data acquired is excellent and has led to the identification of 52 prospects and 40 leads within the license area. An independent Competent Person's Report attributes to these prospects a total un risked potential of 3.1 billion barrels of prospective recoverable resource in the most likely case and up to 10.4 billion barrels in the upside case.

The license area is immediately adjacent to the giant Sea Lion oil discovery which contains over 500 million barrels of recoverable resource.

Argentina always alert to hydrocarbons activities in the Falklands, in a statement from early October, said three oil companies – Rockhopper, Premier Oil, and Argos Resources – were carrying out oil and gas activities on the continental shelf near the Falkland Islands – without the authorization of the Argentine government.

In its statement the Argentine foreign ministry reiterated that the Falkland Islands, South Georgia, the South Sandwich Islands, and the surrounding maritime areas were “an integral part of the Argentine national territory“ and are ”subject to dispute between our country and the UK.”

Argentina said that the oil and gas exploration and production activities being carried out offshore the Falkland Islands constituted “unilateral acts contrary to international law.“

“Therefore, the Argentine Government urges aforementioned companies and other entities to refrain from financing or participating in such activities…,” the Argentine foreign ministry said.