An Introduction to Argos Resources July 2012 Important Notice This - PowerPoint PPT Presentation

An Introduction to Argos Resources July 2012

Important Notice This company presentation (the “Presentation”) has been prepared by Argos Resources Limited (“Argos” or the “Company”) . The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This presentation is not and does not purport to be complete in any way. The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. For a description of such risks, uncertainties and other factors; please see the Company's prospectus dated 27 July 2010. None of the Company or its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Company’s actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with the London Stock Exchange or press releases. This Presentation has been prepared for information purposes only. This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. This Presentation relates to matters up to 23 rd July 2012, and there may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation is subject to English law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of English courts. By receiving this Presentation, you accept to be bound by the terms above. 2

Executive Team Ian Thomson, OBE, Chairman • Founder of Argos Resources in 1995 • More than 40 years experience in Mining and UK onshore exploration. Ex Managing Director of Evergreen Resources UK • Director of a number of Falkland Islands companies engaged in fishing and other operations; hence close ties with the Falkland Islands John Hogan, Managing Director • Qualified geologist with over 35 years experience in the oil industry • Chief Operating Officer of LASMO Plc and Managing Director of LASMO North Sea between 1989 and 2000 • Since 2000 has been active at Board level in a number of private and listed energy businesses • Involved in Falklands in 1998 with LASMO, and since 2005 with Argos Drew Irvine, FCCA, Finance Director • Falkland Islands resident since 1990. Has worked with Ian Thomson in his Falkland Islands businesses since 1999 • Chairman of the Falkland Islands Pensions Scheme • Director of the Falkland Islands Chamber of Commerce Richard Baker, Head of Exploration (Consultant) • Exploration geophysicist with over 35 years international experience • Held several team management roles in independent exploration companies • Completed several North Falkland Basin projects since 2005 Kevin Sylvester – Senior Geologist (Consultant) • Exploration/Development geologist with 35 years international experience • Director of UK based consultancy group with previous management positions in major E&P companies • Argos consultant work on North Falkland Basin exploration since April 2011 Rob Wallace – Geophysicist (Consultant) • Explorationist with over 35 years international experience • Held senior operational roles in North Sea operating companies • Worldwide exploration experience Mike Hazell – Drilling Manager (Consultant) • Chartered Engineer with over 40 years experience in the oil industry. • 32 years spent with BP in various drilling management roles including as Drilling Manager for the Wytch Farm development 3

The Argos Opportunity • Prospective resources 2.1 Billion bbls; High Case 7.3 Billion bbls; backed by 3D seismic • 4 of the 6 largest undrilled prospects in the NFB are in the Argos acreage • Prospects are de-risked by the large adjacent Sea Lion discovery • Multiple Argos prospects similar to Sea Lion • Premier Oil commitment underpins continuing activity • 100% ownership of the licence • Operationally straightforward Low Cost Entry to the Falklands Oil & Gas Province 4

2010/2011Drilling Campaign 15 wells drilled between April 2010 and December 2011 • 7 Exploration wells • 8 Sea Lion appraisal wells Results • Multiple successes: • 1 oil discovery, Sea Lion • 2 oil & gas discoveries, Casper & Casper South • 2 gas condensate discoveries, Beverley & Liz • CPR attributes 386MMBO & 828BCF gas gross 2C recoverable resources (excl Liz) Operating Experience • Water depths 400-500m • Typical cost c.US $30m/well (@ $275K/day rig rate) • Downtime for weather: 2 days/well • Downtime for logistics: zero 5

Argos Acreage Prospect Overview Area Trap Type Prospects Best Estimate (mmbo rec.) Eastern Graben Fans & channel sands 16 589 Western Graben Fans & channel sands 6 919 E & W Grabens Structural 6 599 Total 28 2,107 6

Paleogeography Time of deposition of Sea Lion sands Early Post-Rift, pre-Sea Lion sands 7

Stratigraphic Prospects North-South Seismic Line, Eastern Graben 8

Argos Prospects similar to Sea Lion ARG (Mar 2012 ) RKH (Feb 2012) 9

Stratigraphic Stacked Prospects Multiple Targets • Sea Lion, Casper, Casper S & Beverley are stacked sands with separate oil columns • Sands are encased in organic-rich mudstones, providing source and seal • 4 locations in the Argos acreage where sands are stacked & encased in source rock as at Sea Lion • Stacks offer multiple targets in a single exploration well • Increased resource potential per well Stack Prospects Best Estimate Rec. Resource (MMBO) Rhea Rhea, Poseidon B-E, Kratos D&E and Selene 346 Kratos Poseidon A, Kratos A-C, Elphis, Iris and Oceanis 214 Helios Helios, Triton, Metis 790 Electra Electra & Calypso 69 10

Sea Lion Stack (Sea Lion, Casper, Casper South & Beverley) BEVERLEY Gross Contingent Oil Resources (mmbo) 1C 2C 3C 245 386 560 GCA CPR – April 2012 Figures exclude Beverley resources 11

Amplitude Anomalies Sea Lion Amplitude Map Rhea Amplitude Map 12

Rhea Stack (Selene, Kratos D&E, Rhea & Poseidon B,C,D&E) Rhea Gross Prospective Oil Resources (mmbo) P90 P50 P10 66 346 1,193 Senergy CPR – October 2011 13

Kratos Stack (Oceanis, Iris, Kratos A,B&C, Elphis, Poseidon A) Kratos Gross Prospective Oil Resources (mmbo) P90 P50 P10 51 214 625 Senergy CPR – October 2011 14

Helios Stack (Helios, Metis & Triton) Gross Prospective Oil Resources (mmbo) Helios P90 P50 P10 61 790 2,990 Senergy CPR – October 2011 15

Helios Prospect Amplitude Map at Base of Helios Fan 16

Structural Prospects Zeus Demeter Apollo Hermes Glaucos Istros Gross Prospective Resources (mmbo) Prospect P90 P50 P10 Apollo 24 216 765 Zeus 34 194 642 Demeter 12 47 140 Istros 5 53 202 Glaucos 8 35 102 Hermes 12 54 157 Senergy CPR – October 2011 TOTAL 95 599 2,008 17

North Falkland Basin Prospectivity Source: Argos Source: Rockhopper/Premier July 2012 18

Government Take by Country 100% 80% 60% Falkland Islands 40% 20% 0% 19