1 1 October 2010 Argos Resources Limited
Jan 09, 2016
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October 2010
Argos Resources Limited
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History of Argos Resources
• Management involved in the Falklands for 22 years
• Incorporated in the Falklands in 1995
• Awarded PL001 license in 1996 as part of theAmerada Hess consortium
• Acquired 1,400km of 2D seismic data in 1997
• Two exploration wells on licence in 1998 encounteredoil shows indicating a working hydrocarbon system
• Consortium transferred their 95% interest in the license to Argos by 2004, resulting in Argos owning 100%
• Phase 1 of the license continued to November 2008
• Phase 2 approved to November 2015
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The North Falkland BasinLicences and Prospects
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1998 Drilling History
• 6 wells drilled in 1998, all in the northern half of the North Falkland Basin
• 5 of the 6 wells encountered oil and gas shows. Both Argos wells had oil shows
• The 2 wells in the adjacent Shell licence (now operated by Rockhopper), recovered 27o API oil to surface
from one well and recorded strong gas kicks from the other (Johnson discovery)
• Well Results & Subsequent Conclusions All encountered a thick, rich source rock between 80m and 1,000m thick World class oil source rock Higher organic carbon content than North Sea oil source rocks Lower half of source rock mature for oil generation Estimate over 70 billion barrels of oil generated No prospects tested within or below source rock Potentially a bypassed major oil province
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Main Structural ElementsNorthern North Falkland Basin
WEST EAST
Apollo ZeusHermes
JohnsonBoreasMorpheus
Demeter
Post-rift sag
Late post-rift
Middle post-rift
Early post-rift
Late syn-rift
Pre-rift
Early syn-rift
Seabed
Sea Lion
ARGOS ROCKHOPPER
Approx 35km
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2010 Drilling Campaign
Slot Prospect Timing (2010) G.P.R.R.*
(Mmbo) Operator Result
1 Liz Feb 281 Desire Non commercial gas discovery
2 Sea Lion April 170** Rockhopper Oil discovery
3 Toroa May 1,700 Falkland O&G P&A Dry Hole
4 Ernest July 156 Rockhopper P&A Dry Hole
5 Sea Lion September 170** Rockhopper Tested 2304 bopd
6 Rachel October 249 Desire Sidetracking
* Gross Prospective Recoverable Resources
** Updated estimate
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Argos 2D Prospect Summary
Prospect P90 (mmbo) P50 (mmbo) P10 (mmbo) Mean (mmbo) GCOS
Zeus – Jurassic 56 152 348 182 14%
Zeus – Aptian 10 29 64 34 17%
Zeus – Campanian 9 35 86 42 17%
Demeter – Jurassic 19 48 105 57 8%
Demeter – Aptian 2 5 10 6 17%
Boreas – Valanginian 52 145 346 177 10%
Apollo – Jurassic 47 176 454 221 10%
Istros – Jurassic 11 47 106 52 12%
Glaucos – Jurassic 15 49 108 57 10%
Hermes – Jurassic 15 42 87 47 10%
Hermes – Aptian 8 19 39 22 13%
Total risked exploration 244 747 1,753 897
Source: Senergy
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The Value of 3D Seismic
Stratigraphic Prospects
Gross Mean
Speculative Resource
(Mmbo)
Pre-3D Post-3D
Desire Nil 954
Rockhopper 103 949
Argos 177* TBD
* This represents the Boreas prospect
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Apollo
Glaucos
Istros
Demeter
Zeus Boreas
MorpheusHermes
Johnson
10km
RockhopperSea Lion
PL 001 PL 032
Lead 2
Lead 1
Chronos
W.Graben
Leads to be Matured with 3D SeismicEastern Graben, Leads 1, 2 & Morpheus
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Acquire 3D seismic
Q4 2010/ Q1 2011
Q2 2011
Q4 2011/ 2012
Report on prospect inventory
Q3 2011
High-grade drilling targets, design well,
submit environmental
impact statement
Drilling campaign commences
Forward Plan
Process / interpret 3D seismic data
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Summary
• An active petroleum system in the North Falkland Basin now proven
• First 2 wells in 2010 drilling campaign are discoveries– Liz well encountered 3 separate oil and gas zones, but poor reservoirs– Sea Lion is a significant oil discovery close to PL001 in the adjacent license
• The Directors believe Sea Lion is potentially world class in size, and extremely valuable in low tax regime
• At least 4 more wells to be drilled by RKH and DES in the current campaign, further de-risking Argos licence
• A 3D seismic programme in PL001 will improve detail on existing prospects, and should identify new prospects
• Contract signed for MV Polarcus Asima, a state-of- the-art vessel, to acquire a 3D seismic survey over all of PL001, commencing by early January 2011
• Experienced management team with 22 year history in the Falklands with unrivalled local knowledge and presence
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MV Polarcus Asima