8 June 2012
ARGOS RESOURCES LIMITED
("Argos" or "the Company")
Exercise of options
Argos Resources Limited was notified on 7 June 2012 that, on the same day, a total of 1,250,000 options were exercised by the following directors at an exercise price of 2 pence per share:
% of issued
The option to purchase Ordinary Shares were granted to Mr Ragg, Mr Irvine and Mr Fleming on 12 November 2009, prior to the Company's admission to trading on the AIM market of the London Stock Exchange on 29 July 2010.
Application has been made for the new Ordinary Shares to be admitted to trading on AIM on or around 14 June 2012. The new Ordinary Shares will rank pari passu with the existing Ordinary shares.
Following admission, the total issued share capital of the Company will increase to 217,363,205 Ordinary Shares, all of which have voting rights.
The above figure of 217,363,205 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
For further information:
Argos Resources Ltd (+500 22685)
Ian Thomson, Chairman
John Hogan, Managing Director
Evolution Securities Limited (+44 20 7071 4300)
Citigate Dewe Rogerson (+44 20 7638 9571)
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 was acquired in early 2011 covering the entire licence area. The quality of the seismic data acquired is excellent and clearly demonstrates a material increase in the prospectivity of the licence over that which could be identified from the older 2D seismic data. Twenty eight prospects have been identified by Argos in the licence area. These prospects have a total unrisked potential of 2.1billion barrels of prospective recoverable resource in the most likely case and up to 7.3 billion barrels in the upside case.
The licence area adjoins licences PL032 and PL004b. The Sea Lion oil discovery was made in licence PL032 in 2010 and a total of nine wells have now been drilled to complete the appraisal of this large discovery. An extension of the Sea Lion field into licence PL004b was proven by drilling in late 2011 and additional shallower stacked oil and gas accumulations above the Sea Lion field have also been proven in the Casper, Casper South and Beverley discoveries.
The presence of gas in these latest discoveries, together with gas in the Johnson discovery and gas condensate in the Liz discovery to the south points to a second deeper source rock generating commercial volumes of hydrocarbon into the basin, in addition to the Lower Cretaceous oil source rock.
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 35 years of experience in the petroleum industry.