News listings

energy-pedia farmouts/divestments

Falklands flagFalklands

South America / GoM >>> Falklands

Falklands: Argos Resources announces proposed sale of North Falkland Basin interests to JHI Associates

15 Dec 2022

Photo - see caption

AIM-listed Argos Resources, the Falkland Islands based exploration company focused on the North Falkland Basin, has announced that the Company and JHI Associates Inc., a private company incorporated in Ontario, Canada, have entered into an agreement pursuant to which it is proposed that JHI will acquire Argos' PL001 Production Licence interests in the North Falkland Basin.


  • JHI has agreed to acquire 100 per cent. of the Group's PL001 Production Licence in the North Falkland Basin, immediately to the west of the giant Sea Lion oil field, subject to certain conditions.
  • As consideration, JHI is proposing to issue Argos with new shares in JHI (the 'Consideration Shares'), plus a cash payment enabling the Company to settle transaction and corporate expenses.
  • Following completion of the Transaction, which remains subject to the conditions set out below, the Group would gain exposure to the Canje block, offshore Guyana, which is directly adjacent to the prolific Stabroek block where ExxonMobil has discovered more than 10 billion barrels of oil.
  • The Consideration Shares are expected to represent approximately 9.3 per cent. of the enlarged share capital in JHI following completion of the Transaction.
  • In the event that the Transaction is completed, the financial strength of JHI is expected to underpin the extension of Licence PL001 by two years to 31 December 2024, which was announced by the Company earlier today.
  • The Transaction would diversify both companies' assets and pave the way for further drilling activity in the coming years.

The Transaction remains subject to the satisfactory completion of mutual due diligence and the parties entering into a binding Sale & Purchase Agreement ('SPA'). In the event an SPA is agreed, completion of the Transaction would also be subject to, inter alia, obtaining the necessary approvals from the Falkland Islands Government and Secretary of State to the transfer of Licence PL001 to JHI. Accordingly, there is no certainty that the Transaction will complete on the terms indicated, or at all.

Next Steps & AIM Rule 15

It is anticipated that the proposed Transaction would constitute a fundamental change of business pursuant to AIM Rule 15, as the effect of the Transaction would be to divest the Company of its sole asset. The Transaction would therefore also require the consent of Argos' shareholders being given in general meeting. Upon signing an SPA, the Company will issue a further announcement and publish a circular containing details of the disposal, the proposed change to the business and convene the general meeting.

Next Steps & AIM Rule 41

In the event all conditions associated with the Transaction are satisfied, the Group's sole asset would be a minority shareholding in JHI. The Company's Board of Directors have concluded that in this scenario the costs associated with maintaining an AIM listing would not be justified. Therefore, following completion of the Transaction the Board intends to seek cancellation of the Company's securities from admission to trading on AIM ("Cancellation"). Cancellation would be conditional upon the consent of not less than 75 per cent. of votes cast by the Company's shareholders given in general meeting.  Following Cancellation, it would be the Directors intention to liquidate the Company and distribute the Consideration Shares proportionately to Argos' shareholders on the register at the relevant time.

Photo - see caption
Argos' PL001 Production Licence is located immediately to the west of the giant Sea Lion oil field

Ian Thomson, Chairman of Argos commented:

'This is an attractive transaction for both companies, and I strongly recommend that ARL shareholders vote in favour when asked to do so in a general meeting. JHI has ample cash reserves which are more than sufficient to cover the investments required to advance the exploration activities on Licence PL001 and to meet the financial capability criteria to support a licence extension to 31 December 2024.

In addition to the North Falkland Basin Licence PL001, the transaction gives ARL shareholders access to potential upside in the Canje licence, offshore Guyana, in a basin that has been the highlight of the oil industry for several years, enjoying prolific success from numerous giant oil discoveries.'

Original article link

Source: Argos Resources

Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Subscriber Only Deals

Current Deals

Current Upstream Deals: 277

Completed Deals

Completed Upstream Deals: 6455

Company Profiles

Current Company Profiles: 2886

Corporate Activity

Current Corporate Activity articles: 4034

Companies Looking

Current number of articles: 463

Company Sales

Current Company Sales articles:1620


Current Geostudies articles: 912

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

Rose & Assocs 180
Telos NRG
Union Jack Oil 149
Government of South Australia
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675