Places
Operations
Argosy has a quality asset base in Alberta, Canada. It maintains high working interests and operates all of its properties. Argosy primarily pursues low to medium-risk natural gas prospects with multi-zone potential.
Argosy's business strategy going forward is to create sustainable value through exploitation of its principal properties and expand its asset base through crown land sales, farm-ins and strategic acquisitions. Argosy's current success is due to initiating the development and operating of its land base while maintaining high working interests. Argosy currently has a 100% working interest in 98% of its lands.
Reserves
Total proved plus probable reserves for Argosy Company as at December 31, 2010 were estimated to be 4.1 MBOE. Reserves are comprised of 75% natural gas and 22% oil and natural gas liquids.
Areas
Claresholm/Pearce
Argosy has a 95% working interest in 24 (net 19.8) natural gas wells and 5 (net) oil wells. The Company has 23,301 net undeveloped acres, gathering and sales pipelines and a 75% working interest in a natural gas processing facility. Argosy has earned 3200 acres by drilling 5 wells on the previously announced farmin arrangement with ExxonMobil and has an option to earn another 5120 acres. The next well planned on these lands is scheduled for Q3 of 2011.
An additional 20 potential locations have been identified on the company-owned 126.8 square kilometers of 3D seismic. Development of the Pearce area oil play continues using an enhanced recovery process. Initial production of these oil wells is estimated at 25-50 boe/d.
Edson
Argosy has a 100% working interest in 18 sections of land in the Edson area which is located approximately 290 kilometers west of Edmonton and 20 kilometers south of the town of Edson.
Producing wells in this area feature multiple productive zones. Argosy owns 4 sweet natural gas wells, 2 producing and 2 awaiting tie-in. Argosy has identified 11 horizontal locations on its 8960 acres of net undeveloped lands. A horizontal test well is scheduled for early 2012.
Ante Creek
Argosy purchased Radius Resources Corp. in May of 2010. Recently, 24 (21 net) sections of shallow rights in the southern block of Ante Creek were divested for total proceeds of $4.5 mm. The deep rights in 6 (5 net) of the divested lands were retained by Radius. The company currently holds a 43% (net) working interest in 12 sections of undeveloped lands in Ante Creek and has retained the original 272,000 BOE of proven plus probable reserves and 60 BOE per day of production from the original transaction.