RNS Number : 1629Q
Argos Resources Ltd
24 June 2022
This announcement contains inside information
ARGOS RESOURCES LIMITED
("Argos", the "Group" or "the Company")
Update on Licence PL001, Funding and Publication of Results
Argos Resources Limited (AIM: ARG.L), the Falkland Islands based
exploration company focused on the North Falkland Basin, is pleased
to provide an update on the Company's PL 001 Licence, Argos'
funding position and the anticipated timing for publication of the
Company's financial results for the year ended 31 December
Argos announced on 11 April 2022 t hat the Falkland Islands
Government ("FIG") had extended the second term of the Company's
PL001 Licence from 1 May 2022 to 31 December 2022, with no
additional work commitments.
The Company is currently in discussions with FIG regarding the
terms on which a further extension of the PL001 Licence may be
granted, to enable Argos to undertake the necessary technical work
to progress the project. The Board expects that any extension
beyond 31 December 2022 would be subject to certain technical
commitments from the Company, which would require Argos to raise
Update on Funding Position
Mr Ian Thomson, OBE, Chairman of Argos, has agreed to provide a
loan facility of up to GBP110,000 to the Company (the "Loan
Facility"). Drawdown from the Loan Facility can be made at the
Company's request. The Loan Facility is available until 31 January
2023 with no interest accruing on borrowed amounts. If the Company
carries out a share issue by way of fund-raising, the lender shall
be entitled to convert the loan then outstanding into new shares
issued on the same terms as those available to other participants
in the issue.
The Loan Facility, along with the Company's existing resources
of GBP100,000 as of 24 June 2022, will provide the Company with
sufficient working capital until July 2023.
The provision of the Loan Facility is deemed to be a related
party transaction for the purposes of the AIM Rules for Companies.
The Independent Directors consider, having consulted with the
Company's nominated adviser, Cenkos Securities plc, that the terms
of the Loan Facility are fair and reasonable insofar as the
Shareholders are concerned.
Publication of Results
Alongside the provision of the Loan Facility, the Company has
been in discussions with its auditors to ascertain the basis on
which its annual audited accounts for the year ended 31 December
2021 ("FY21 Accounts") should be prepared. It is now expected that
the FY21 Accounts will be prepared on a going concern basis as, in
the opinion of the directors, there is a reasonable expectation
that the Group and the Company will continue in operational
existence for the foreseeable future.
Under Rule 19 of the AIM Rules for Companies, an AIM company
must publish annual audited accounts which must be sent to its
shareholders without delay and in any event not later than six
months after the end of the financial year to which they
As a result of the Company's extended discussions regarding its
funding position, and the associated impact on the timing for the
FY21 Accounts, the Company will not be in a position to publish its
2021 Financial Statements by the deadline of 30 June 2022.
Consequently, the Company's shares will be temporarily suspended
from trading on AIM as of 7.30 a.m. on 1 July 2022, pending
publication of the FY21 Accounts. The Directors are endeavouring to
complete the procedures required for audit completion and will
publish the FY21 Accounts as soon as possible.
Notwithstanding the temporary suspension of trading in the
Company's shares, the Company will continue to make announcements
as and when there are any developments that require to be notified
under the AIM Rules for Companies.
For further information:
Argos Resources Ltd (+500 22685)
Ian Thomson, Chairman
John Hogan, Managing Director
Cenkos Securities plc (Nomad & Broker)
Derrick Lee (+44 131 220 9100)
Neil McDonald (+44 131 220 6939)
Notes to Editors
Argos Resources is an oil and gas exploration company listed on
AIM and based in the Falkland Islands. The Company's principal
asset is a 100 per cent interest in production licence PL001
covering an area of approximately 1,126 square kilometres in the
North Falkland Basin.
A 3D seismic survey has been acquired over the entire licence
area. The quality of the seismic data acquired is excellent and has
led to the identification of 52 prospects and 40 leads within the
licence area. An independent Competent Person's Report attributes
to these prospects a total unrisked potential of 3.1 billion
barrels of prospective recoverable resource in the most likely case
and up to 10.4 billion barrels in the upside case.
The licence area is immediately adjacent to the giant Sea Lion
oil discovery which contains over 500 million barrels of
recoverable resource. A decision to proceed with the development of
the Sea Lion field is pending.
The Company has a strong and experienced management team with
extensive experience in both the oil and gas
industry and the Falkland Islands.
This statement has been approved by John Hogan, Managing
Director of Argos Resources and a qualified geologist with over 40
years of experience in the petroleum industry.
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(END) Dow Jones Newswires
June 24, 2022 08:28 ET (12:28 GMT)
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