Argos seeking funds for Falklands seismic

Argos Resources is seeking to raise £22 million ($34.3 million) via a conditional share placement.

Offshore staff

PORT STANLEY, Falkland Islands -- Argos Resources is seeking to raise £22 million ($34.3 million) via a conditional share placement. If successful, the company plans to use much of the net proceeds of £20.6 million ($32 million) to finance a new 3D seismic program on its offshore permit in the North Falklands basin.

Argos has a 100% interest in Production License PL001, covering an area of around 1,126 sq km (435 sq mi). It adjoins permits currently undergoing an eight-well exploration campaign operated by Rockhopper and Desire Petroleum.

Interpretation of existing 2D seismic in PL001 has identified seven prospects and five leads, the prospects holding total unrisked potential recoverable oil resources of 747 MMbbl, with upside for up to 1.75 Bbbl.

Argos has not provided resource estimates for the mapped leads, as these need further work to mature.

Chairman Ian Thomson said: “The potential for significant oil and gas reserves in the Falkland Islands region has been the subject of speculation for some considerable time. Recent discoveries in the North Falkland basin, where Argos has its license, have not only conclusively proven a working petroleum system and indicated potential significant reserves upside, but have also de-risked further exploration drilling within this northern basin.”

07/28/2010

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