Argos Rejects Participation in Falkland Drilling Campaign

Argos has decided not to participate in the current drilling campaign in the area with the Ocean Guardian (mid-water semisub), 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 program within the Company's license 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 program 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 program.

"After taking appropriate advice from a range of sources in the capital markets the Board has concluded that in current market circumstances funding for two or more wells would not be available even on highly dilutive terms for existing shareholders.

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

"We still have additional work to do to complete the interpretation of the 3D data and prepare the license for farm-out. This work will be completed in the first half of 2012 and the option of an industry partner will then be pursued. We will continue to consider other options to fund drilling costs.

"We believe that we can create more value in the future by ensuring that an adequately sized drilling program can be financed and implemented before exploration drilling commences on our license. We remain convinced of the value of the acreage and the merits of an extensive drilling program."

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Production Engineer
Expertise: Production Engineering
Location: Houston, TX
Senior Client / Program Manager
Expertise: Geologist|Reservoir Engineering
Location: Seattle, WA
Senior Sales Representative - Oil and Gas
Expertise: Corrosion Engineering|Petroleum Engineering|Sales
Location: Harvey, LA
search for more jobs

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours