Argos lifts Falkland oil estimate

Argos Resources has issued the results of a new Competent Persons Report on its offshore acreage in the North Falkland basin, prepared by Senergy.

Offshore staff

PORT STANLEY, the FalklandsArgos Resources has issued the results of a new Competent Persons Report on its offshore acreage in the North Falkland basin, prepared by Senergy.

The new CPR identifies additional prospectivity resulting from interpretation of recent 3D seismic over Argo’s PL001 license.

Based on the findings, the total best estimate of unrisked potentially recoverable prospective resources on the license is 2,107 MMbbl of oil, up 182% compared with the previous estimate of 747 MMbbl.

The prospects fall broadly into two categories: 
• Combination structural and stratigraphic traps defined by seismic amplitude anomalies, in several cases supported by isopach and structural conformance with the anomaly 
• Fault bounded and four-way dip closed structural traps, with closures at various horizons providing multiple reservoir targets.

For the first category, 22 new combination structural and stratigraphic prospects have been mapped. Four are within the previously identified Boreas prospect area, while the remaining 18 were not prior to analysis of the new 3D data.

Argos says these prospects should contain good-quality sandstone reservoirs, and several, notably Rhea, exhibit similar seismic anomalies to those seen at Rockhopper’s nearby Sea Lion oil discovery.

In four areas within the license a number of these prospects are vertically stacked, offering the potential for one well to chase multiple drilling targets.

For the second category of prospects (structural traps), the new 3D data has confirmed the presence of all six structural prospects mapped from the reprocessed 2D seismic data.

The newly interpreted data has improved fault definition and therefore also confidence in mapping.

Final processed data for the entire survey area should be received around year-end. Argos expects further improvements in data quality, which should help seismic modeling.

Future work using this data will include modeling of potential reservoir sands within the Johnson gas discovery, which appears to extend into the Argos license.

Argos still hopes to be ready to drill in late 2011/early 2012 in order to have an option to contract the semisub Ocean Guardian which is on long-term duty in the area.

To this end it has issued an Environmental Impact Statement and purchased three wellhead assembly packages which are being held in storage to avoid long lead-order item delays.

10/14/2011

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