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Argos Resources says 3D data is best quality seen in Falklands Basin to date

Published: 07:19 27 Aug 2013 BST

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Argos Resources (LON:ARG) said it is extremely well placed to participate in the next round of exploration drilling in the Falklands and continues to consider various ways to finance drilling.

According to the best estimate of unrisked potentially recoverable prospective resources on the Argos licence area, Argos is sitting on around 3,083mln barrels of oil, with 40 additional leads still to be evaluated. The high estimate is 10,412mln barrels of oil, the company said in its half-year statement.

Future work still to be undertaken on the 3D data includes, where appropriate, mapping potential reservoir sands within the Johnson gas discovery, which appears to extend into the licence area.

"The 3D seismic data we have obtained is the best quality data seen in the basin to date. This has allowed us to map with confidence numerous stratigraphic prospects associated with the Early Cretaceous delta system that is a principal feature of the licence area,” said Ian Thomson, chairman of Argos.

“New proprietary geochemistry studies have also confirmed that two proven oil source rocks within the licence area are mature for significant volumes of oil generation, and this has added to the improved estimated chances of success for most of the prospects,” Thomson added.

Cash and cash equivalents at the end of June 2013 totalled US$4.26mln, compared to US$6.89mln. The group is fully funded to carry out its current activities and has funds to cover administration costs beyond 2014.

“The directors continue to actively consider various financing options to facilitate exploration drilling,” Thomson revealed.

Financial results are not very meaningful for a company at this stage of development but, for the record, the group made a half-year loss of US$1.17mln, versus a loss of US$800,000.

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