Argos Resources Limited, the Falkland Islands based exploration company focused on the North Falkland Basin, declared its interim financial results for the six months ended 30 June 2011.

Highlights

1415 sq kms of proprietary 3D seismic data acquired over Licence PL001 Best seismic data quality seen in Basin to date Several new stratigraphic prospects already mapped, adding to prospect inventory Interpretation continues with further prospects expected to be identified Trading of seismic data with adjacent licencees has created an excellent data base More 3D data acquired and at lower cost than initially anticipated Sufficient cash, post seismic, to meet ongoing needs, before drilling capital required Financial Overview

Losses for the Group for the 6 months to 30 June 2011 were $557K (2010 $248K) giving a loss per share of 0.26 cents (2010 0.43 cents) Administrative expenses increased from $248K to $708K due to the increased level of activity since the fund raising in July 2010. Net assets at the period end have decreased from $36,233K to $35,681K as a result of the losses incurred. Financial outlook

The cash raised in 2010 is being used to finance the acquisition, processing and interpretation of 3D seismic over the licence area. The Group is fully funded to carry out this activity and has funds to cover administration costs beyond 2012.

Risk and principal uncertainty

The funding and forward plan has changed the risk profile of the Group operations.

Mr. Ian Thomson, chairman of Argos, said: "Interpretation of the 3D data is now well advanced. The two structural prospects, Zeus and Demeter, have been confirmed and are considered to be robust closures. Mapping of other structural prospects continues and early indications are encouraging that these, too, will be confirmed.

"One of the principal features of the northern part of the North Falkland Basin, in the vicinity of Licence PL001, is the presence of a major delta system. The 3D data quality over the delta is excellent and we are now using that data to identify new stratigraphic prospects. Several new prospects and leads which were not evident on the old 2D data have already been mapped from the 3D data. We are very encouraged that additional prospectivity is being identified in our licence area.

"The Company is on schedule to be drill ready in late 2011/early 2012 in order to have the option to contract the Ocean Guardian drilling rig which is currently operating in the area. Additional capital will be required to finance drilling and the Board is considering options to achieve this."

Tags: Argos Resources Ltd