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Argos Resources will benefit from drilling in the Falklands: Buy

By Gary Newman

18 January 2015 07:21

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Drilling for oil is due to start again in the Falkland Islands in the next few months and is bound to create a lot of interest despite the current state of the oil industry. The Erik Raude deepwater rig has already been contracted by Premier Oil (PMO) and Noble Energy to drill a number of wells that they farmed into with Rockhopper (RKH) and Falklands Oil and Gas (FOGL), respectively.

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Comments

wildrides

18 January 2015, 14:41

I note you own some of this lobster pot …………. good luck ……….. I am going with gold .

the “limited downside “ of course is $40 a barrel
Gary Newman

19 January 2015, 07:48

Wildrides,
Drilling is happening in the Falklands whatever the oil price does, and given it is funded for 2015 and the level of speculation that will surround the Falklands in general during that period it should see a rise. Historically the oil companies in the FIs have tended to see their SPs rise and fall in unison during drilling (even if it was in the other basin to where they were based!). There is also always an outside chance of a farm in as it will happen soon or not at all. Like i said it is a speculative play and not one where i would really be deciding between this and gold, as I see the two as having completely different risk profiles for a start. If you’re talking in terms of gold miners, rather than physical gold, then you still have to pick the good ones (have been watching Centamin for a while and that has been rising nicely – I don’t disagree with you that gold is well worth being in).