Argos Resources storms upward after Falkland licence secured

Argos Resources stormed upward on Thursday after it confirmed it has taken full ownership of the PL001 Licence in the North Falkland Basin

The AIM traded resource exploration outfit said it gained 100% of the project equity under the terms of an agreement struck with Noble Energy and Edison International, who dropped out of the project last year, back in February 2016.

The parties had previously intended to drill an exploration well back in 2017 before issues with the contracted rig led to the partners backing away from prior plans and abandoning the project.

Under the prior agreement, Argos had received quarterly cash payments from Noble and Edison totaling £0.3m per annum in order to help the company cope with costs.

Now the sole owner of the licence, which is adjacent to Licences PL032 and PL004 containing the large Sea Lion oil field and the Zebedee and Isobel-Elaine discoveries, Argos has indicated that it will search for other businesses to partner-up with in order to progress.

Ian Thomson, chairman of Argos Resources, said: "The company remains very positive about the potential of Licence PL001. We have sufficient cash reserves to meet our ongoing requirements. Now that the reassignment of the Licence has been completed the company will work to secure other partners to participate in its development".

Argos Resources' shares were up 29.09% at 3.55p at 1629 GMT.