ARGOS Resources has decided not to participate in the current drilling campaign with the semi-submersible rig Ocean Guardian, reports Upstream Online today, November 29, 2011.
Argos chairman Ian Thomson said the weak state of capital markets and the restricted availability of the rig would not allow the company to carry out a "meaningful" drilling programme.
"We have rejected the option of drilling only one well at this time as we remain convinced of the value of the acreage and the merits of a more extensive drilling programme," Thomson said.
"After taking appropriate advice from a range of sources in the capital markets the board has concluded that in current market circumstances funding for two or more wells would not be available even on highly dilutive terms for existing shareholders."
He added the company had held preliminary with a number of possible farm-in partners but those which could have been finalised within the timeframe of the availability of the Ocean Guardian would have only involved a single well which was not acceptable to the country.
Earlier this year Argos announced it had identified a number of prospects on its wholly-owned licence PL001 following the interpretation of new 3D seismic data. and at the time it said it planned to use the Ocean Guardian to carry out a drilling campaign late this year or early next.
The Ocean Guardian is currently drilling the 14/15-4 well on production licence 004b for Rockhopper Exploration.
Following completion of its drilling campaign in the Falkland Islands the rig is booked to work for Shell in the North Sea under a two year charter at a basic dayrate of $263,000.