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 the Company corrected for the first two quarters of 2009 were estimated to be 4,462 MBOE. Reserves are comprised of 90% natural gas with the remainder being oil and natural gas liquids.
Areas
Claresholm
Argosy has a 93% working interest in 20 (net 17.2) natural gas wells and 5 (net) oil wells. The Company has 15,000 net undeveloped acres, gathering and sales pipelines and a 75% working interest in a natural gas processing facility. The Company’s has earned 2560 acres by drilling 4 wells on the previously announced farmin arrangement with ExxonMobil and has an option to earn another 6400 acres. The next well planned on these lands is scheduled for September of 2010.
The Company also plans to drill 2 additional wells in this area before the end of 2010. An additional 20 potential locations have been identified on the Company-owned 47 square kilometers of 3D seismic. The Company’s operational plans also include further development of the Pearce area oil play 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. The Company is reviewing 2D seismic data it has recently purchased for Notikewin/Wilrich targets. A horizontal test well is scheduled for Q4 of 2010 or early 2011.
Saxon
The Saxon area is located 125 kilometers southwest of Grand Prairie, Alberta. It is in the early stages of geological development and is more readily accessible in the winter months.
Argosy has 100% working interest in 26.75 sections of land, 2 (net) producing natural gas wells and 15,040 net undeveloped acres. The company also owns 36 square miles of 3D seismic and 20 kilometres of 2D seismic over the lands.
The Company has determined that shareholder value will be better served by rationalizing this property to provide additional funds to further exploit its Claresholm, Pearce and Edson properties. Peters & Co has been engaged to assist in the sale of this property and bids are expected to be received by mid-July of 2010.
Ante Creek
The Company has recently completed the purchase of Radius Resources Corp. The Radius acquisition added approximately 194,000 BOE of proven reserves, 396,000 BOE of proven plus probable reserves, 19,000 acres of undeveloped land and 60 BOE per day of production. Radius’s properties are primarily concentrated in the Ante Creek area of Alberta.