Proactiveinvestors Australia

Argos placed £22m of new shares which commenced trading on July 29th 2010. The funds were raised to undertake a 3D seismic programme during the austral summer of 2010/2011 over the prospects identified from its earlier 2D seismic. The intention was to better define those prospects, and potentially to identify new prospects, leading to the selection of possible targets for a subsequent drilling programme in Q4 2011 and 2012. The Company announced in October 2010 that it had contracted the MV Polarcus Asima to undertake this 3D programme, seismic acquisition commenced in January 2011 and was completed in May.

1415 sq kms of 3D seismic was acquired to cover the entire licence area. The quality of this new data is excellent and results obtained from its interpretation are highly encouraging. The new 3D data has confirmed the presence of all six structural prospects that were mapped from the reprocessed 2D seismic data and that were described in an earlier CPR by Senergy in June 2010. The 3D data has achieved better data quality and fault definition and has therefore improved confidence in the mapping of these prospects.

A total of 22 new combination structural and stratigraphic prospects have been mapped that were not apparent prior to the 3D data being acquired. Additional leads, not included in the above numbers, have also been identified and are the subject of ongoing mapping.

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Exploration

The Company contracted the MV Polarcus Asima to carry out its 3D seismic programme, which commenced in January 2011 and was completed in May. 3D data was acquired over the entire area of the licence, as well as in open acreage to the north of the licence. Extending the 3D programme into open acreage to the north will provide 3D coverage of the Johnson gas discovery. It will also ensure that any prospects that might extend beyond the licence boundary have full 3D coverage, and it has provided a low cost opportunity to look for additional prospectivity in the northerly continuation of the basin.

Seismic interpretation of the 3D data is now well advanced. The Company has confirmed the six structural prospects identified from 2D data to be robust closures and has identified 22 new prospects which were not apparent prior to the 3D data being acquired. High-grading of these prospects and the selection of optimum drilling locations is currently underway. Ranking and de-risking of prospects has been aided by the results of the recent drilling undertaken in the adjoining licences

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Drilling Programme

A new drilling programme in the North Falkland Basin commenced in 2009 utilising the Ocean Guardian semi-submersible rig . As of 1st October 2011, 14 new wells had been drilled. A significant oil discovery, the Sea Lion field, was announced by Rockhopper Exploration in May 2010 and 6 of the 14 wells drilled have been on Sea Lion to appraise that discovery. The discovery well, 14/10-2 encountered 53 m of net oil pay in multiple zones of good sands. A subsequent appraisal well tested oil at a stabilised rate of 5,508 barrels of oil per day. The Operator's latest Mid Case estimate of oil initially in place is 1,297 million barrels. 

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Ian Thomson OBE - Executive Chairman

Ian, a Chartered Engineer, founded Argos in 1995. After an early career in the mining and energy equipment industry he became the Managing Director of Evergreen Resources Inc.'s exploration and production interests in the UK and Europe. He is director of a number of Falkland Islands and overseas companies engaged in fishing and other operations.

John Hogan - Managing Director

John joined the Board in 2005. John is a qualified geologist who has spent over 35 years in the oil industry. He was Chief Operating Officer of LASMO plc and Managing Director of LASMO North Sea between 1989 and 2000. Since 2000, he has been active at board level in a number of privately held and quoted energy businesses internationally.

Andrew (Drew) Irvine FCCA - Finance Director

Drew joined the Board in 2005. After qualifying as a Chartered Certified Accountant in Scotland, Drew managed the Pannell Kerr Foster related accounting practice in the Falkland Islands. Drew is now a Falkland Islands resident and is a director of a number of Falkland Islands companies. He is Chairman of the Falkland Islands Pensions Scheme and a member of the Board of the Falkland Islands Fishing Companies Association and a director of the Falkland Islands Chamber of Commerce and other organisations.

Dennis Carlton – Senior Non-executive Director

Dennis joined the Board in 2005 having served on the board of Argos Exploration since 1995. Dennis is a qualified petroleum geologist and has been involved with the North Falkland Basin since 1995. He was Chief Operating Officer of Evergreen Resources Inc. between 1981 and 2004 and, following its merger, Vice President of Exploration, Western Division for Pioneer Natural Resources USA Inc. until 2008. He is currently a director of a number of other private companies operating in the energy and other sectors.

Christopher Fleming - Non-executive Director

Chris joined the Board in 2008. Chris graduated from Aberdeen University with an M.A. in Economics and Law and joined Morgan Grenfell in 1985. Between 1987 and 2005 he was involved in the development of the Gilt Sales operations of Bankers Trust, Deutsche Bank and SBC Warburg as Head of Sales of each of the Banks. From 2005 to 2009 he was Head of EMEA Flow rates, Credit and Currency Sales for RBS Global Marketing and Banks and is currently Global Head of Rates Sales for Nomura International PLC.

James Ragg LLB, FCA - Non-executive Director

James joined the Board in 2008. James qualified as a Chartered Accountant in 1995 and, after eight years with Saffery Champness, joined Haines Watts as an audit and assurance partner in 2004. He is currently a designated Partner in Haines Watts South LLP. Alongside his audit and assurance role, James is an expert on organisational governance and lectures regularly on governance responsibilities. He is a trustee and audit committee member of a major UK charity.

Shares in issue: 217,363,205  2p Ordinary Shares in Issue, as at Last Close.

As at 24 September 2012 Argos Resources Ltd. is aware that 23.37% of shares are not in public hands.

There are no restrictions on the transfer of any of the company's securities.

1 Ian Thomson has a 46.46 percent interest in the issued share capital of Argos Georgia Ltd

2 Iain Aylwin has a 23.23 percent interest in the issued share capital of Argos Georgia Ltd

Argos Georgia Limited is an 'associate' of Ian Thomson for the purposes of the AIM Rules. The aggregate of Ian Thomson's and Argos Georgia Limited's interest in the share capital of the Company is 19.46%.

Information taken from Company website 12.10.2012