Argos Resources Limited confirms that its wholly-owned subsidiary, Argos Exploration Limited, has entered into a farmout agreement with Noble Energy Falklands Limited and Edison International S.p.A which will allow exploration drilling on its Licence PL001, covering an area of approximately 1,126 square kilometres in the North Falkland Basin, to proceed as part of the current 2015 drilling programme.
•Noble will assume operatorship of Licence PL001 from Argos;
•Noble and Edison will earn a 75% and 25% working interest in the Licence respectively;
•Noble and Edison have committed to drill an exploration well in the Licence Area during the current drilling campaign at no cost to Argos;
•Argos will retain an overriding royalty interest of 5% of gross revenues from all hydrocarbon discoveries developed within the Licence (the 'ORRI');
•Argos will have no requirement to contribute to any future capital or operating expenditures incurred over the life of the Licence;
•Argos will receive US$2.75 million in cash upon completion of the Transaction and US$800,000 per annum from 1 January 2016 through to receipt of the first royalty payment pursuant to the ORRI (if any) as reimbursement for certain historic costs incurred by Argos in relation to the maintenance of the Licence and the acquisition of certain seismic and other data in respect of the Licence Area;