News Column

Argos Resources First-Half Loss Narrows, More Confident On Outlook

August 29, 2014

Sam Unsted

LONDON (Alliance News) - Argos Resources Ltd posted Friday a narrowed pretax loss for the first half, saying it is more confident on the outlook for its farm-out efforts following the recent contracting of the Erik Raude deep water rig by Noble Energy Inc and Premier Oil PLC.

The pretax loss for the Falkland Islands-focused oil explorer came in at USD653,000 for the six months to June 30, reduced from the USD1.2 million loss posted a year earlier.

The company said its farm-out campaign has been strengthened by the contracting of the Erik Raude deep water rig by Noble Energy and Premier Oil, which has provided some clarity on a 2015 drilling programme and further increased confidence in a farm-out by Argos.

In addition, the company said an updated competent person's report - showing 52 prospects, 40 leads, and estimates of unrisked prospective resources of 3.1 billion barrels of oil - also has underpinned its farm-out programme.

The company has been focusing on attracting partners to its PL001 production licence in the Falkland Islands and said a number of companies have expressed an interest in the licence.

"I am hopeful that the recent contracting of the Erik Raude deep-water drilling rig and the clarity that brings on a 2015 drilling timetable around the Falkland Islands now will allow us to conclude our own farm-out on satisfactory terms for our shareholders," said Argos Chairman Ian Thomson.

"Negotiations are currently underway with potential partners to secure funding for drilling," Thomson added.

Argos Resources shares were down 1.4% to 11.83 pence on Friday.

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Source: Alliance News

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