Argos Resources Limited, the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce the publication of a new Competent Person's Report ("CPR") prepared by Senergy (GB) Ltd ("Senergy").
The CPR identifies considerable additional prospectivity resulting from further detailed interpretation of the Company's 3D seismic data acquired in 2011 over its 100% owned licence PL001. Based upon the CPR, the total Best Estimate of unrisked recoverable prospective resource on the licence area amounts to 3,083 mmbo, an uplift of 46 per cent on the resource estimate of 2,107 mmbo included in the 2011 CPR.
In April 2011, the Company announced the completion of the acquisition of 1,415 net square kilometres of 3D seismic data, including coverage over the entire licence area, a halo outside the licence boundaries and tie-ins to key wells. The entire 3D data set was processed on a fast-track basis from which the Company identified a portfolio of prospects. The 2011 CPR, prepared by Senergy, was issued in October 2011 based on the interpretation of this fast-track processed data and described 28 prospects with a Best Estimate prospective resource of 2,107 mmbo.
The final processed version of the 3D seismic data was received by the Company in January 2012 and detailed work on this data indicated that considerable additional prospectivity existed within the licence area over that described in the 2011 CPR. The directors concluded that the potential increase in prospectivity was so significant that a new Competent Person's Report was required to verify the increase and to reflect fully the potential of the licence area. The Company announced in February 2013 that Senergy had been commissioned to prepare the CPR.
The prospects identified in the CPR fall broadly into two categories:
-Combination structural and stratigraphic traps defined by seismic amplitude anomalies and, in several cases, supported by isopach and structural conformance with the anomaly.
-Fault bounded and four-way dip closed structural traps often with closures at several horizons providing multiple reservoir targets.
In respect of the first category of prospects, the combination structural and stratigraphic traps, a total of 46 prospects have been mapped. These prospects are expected to contain good quality sandstone reservoirs with several exhibiting similar seismic anomalies to those seen at the Sea Lion oilfield.
The Best Estimate of net unrisked potentially recoverable prospective resource for these prospects amounts to 2,484 mmbo. In several areas within the licence a number of these prospects are vertically stacked, offering the potential for drilling targets to combine several objectives to be tested by one well. An example is the Rhea stack, where a combined potential of 449 mmbo of prospective resources can be tested by one well.
40 additional leads, not included in the above resource numbers, have also been identified and are the subject of ongoing mapping.
In respect of the second category of prospects, the structural traps, mapping of the final processed 3D is unchanged from that reported in the 2011 CPR. The Best Estimate of net un-risked potentially recoverable prospective resource for these structural prospects amounts to 599 mmbo.
Therefore, the total Best Estimate of unrisked potentially recoverable prospective resource on the Argos licence area currently amounts to 3,083mmbo, with 40 additional leads still to be evaluated. The High Estimate is 10,412mmbo.
Future work still to be undertaken on the 3D data will include mapping potential reservoir sands within the Johnson gas discovery, which appears to extend into the licence area. Potential contingent resources for the Johnson gas discovery attributable to the Company have not been included in the above figures.
Commenting on the results of the seismic interpretation, Ian Thomson, Chairman of Argos, said:
"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. 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.
The directors continue to actively consider various financing options to facilitate exploration drilling."