Argos Pulls Out of Falklands Drilling Program

Argos Resources Limited , the Falkland Islands based exploration company focused on the North Falkland Basin, today reports that it has decided not to participate in the current drilling campaign in the area with the Ocean Guardian rig, which is now likely to end in December 2011.

The weak capital markets combined with the planned departure of the rig will not allow a meaningful multi-well exploration drilling programme within the Company’s licence area to be undertaken at the present time.

Commenting on this, Ian Thomson, Chairman of Argos, said:

“We have identified a large inventory of attractive prospects from excellent quality 3D seismic data acquired earlier this year. This inventory justifies several exploration wells being drilled to test adequately the potential of our acreage. However, the current weak state of the capital markets and the restricted availability of the Ocean Guardian rig will not allow a meaningful drilling programme to be undertaken. We have rejected the option of drilling only one well at this time as we remain convinced of the value of the acreage and the merits of a more extensive drilling programme.

We have held preliminary discussions with a number of possible farm-in partners. Farm-in arrangements which could have been finalised within the timeframe for availability of the Ocean Guardian involved a single well only, and were not therefore acceptable.”

Offshore Energy Today Staff , November 29, 2011;

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