Competent Persons Report

Argos Resources has to date published 3 independent Competent Person’s Reports (CPR), all carried out by Senergy, The first CPR was published in June 2010 to assess a portfolio of prospects identified in the PL001 licence based on the interpretation of reprocessed 2D seismic data.

Following the acquisition of 3D seismic data in early 2011 over the entire licence area Senergy were commissioned to produce a new CPR based on the interpretation of a fast-track processed version of the 3D seismic data. This was published in October 2011.

The final processed version of the 3D data was received by the Company in early 2013 and showed considerably more prospectivity existed on the licence over that described in the October 2011 CPR. A new CPR was therefore commissioned to report fully on the potential of the licence area. This was published in July 2013.

The pdf of the report contains Senergy’s report in full, as well as a summary of their assessment of the Johnson discovery in the adjacent licence PL032.

The Opportunity

• Proven commercial petroleum system
• 52 oil prospects, defined by excellent quality 3D seismic data
• CPR attributes 3.1 billion barrels of prospective recoverable resource to the prospects, with upside of 10.4 billion barrels
• 40 additional leads identified
• Several prospects similar to Sea Lion
• Prospects have been de-risked by the Sea Lion discovery
• Potential extension of Johnson gas discovery into Licence
• Argos holds an overriding royalty interest of 5% of gross production from all hydrocarbon discoveries developed within the Licence (the “ORRI”)
• Argos has no requirement to contribute to any future capital or operating expenditures incurred over the life of the Licence
• Benign operating environment
• Stable government with a competitive tax regime