Argos Resources Limited (AIM: ARG.L), (the “Company”, “Argos”), the Falkland Island based exploration company, announces the completion of the reassignment to the Company of 100% Working Interest in Licence PL001 in the North Falkland Basin.
Following the earlier notice to withdraw from the Licence by its former partners Noble Energy Falklands Limited (“Noble”) and Edison International S.p.A (“Edison”).
Ian Thomson, Chairman of Argos, commented:
“The Company remains very positive about the potential of Licence PL001. We have sufficient cash reserves to meet our ongoing requirements. Now that the reassignment of the Licence has been completed the Company will work to secure other partners to participate in its development”.
Argos Resources Ltd is an AIM quoted oil and gas exploration company based in the Falkland Islands, ideally placed to make the most of an exciting new oil province heading towards production.
Argos holds a 5% Overriding Royalty Interest in Licence PL001, which covers approximately 1,126 square kilometres in the North Falkland Basin. The licence boundary is just 3km from the Sea Lion oil field, a significant discovery on course for development sanction in 2016.
3D seismic data of excellent quality was acquired over the entire licence area in 2011 and has identified 52 prospects with a best estimate of 3,083 million barrels of prospective recoverable resource, and a high estimate of 10,412 million barrels. 40 additional leads have been identified which are not included in the above resource figures and which are the subject of ongoing work.
The Company has entered into a Farmout Agreement with Noble Energy Falklands Limited and Edison International S.p.A. in which Noble assumed operatorship of Licence PL001 from Argos in September 2015 and Noble and Edison earned a 75% and 25% working interest in the Licence respectively. Argos retained an Overriding Royalty Interest of 5% of gross production from all hydrocarbon discoveries developed within the Licence. This royalty interest is free and clear of all future capital and operating costs for the life of the Licence.
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