Toronto, Ontario--(Newsfile Corp. - June 24, 2022) - As a result of an increase in oil and gas prices, world energy supply issues, and the abundance of oil and gas exploration and development opportunities in Canada, on June 23, 2022 Argo Gold Inc. (CSE: ARQ) (OTCQB: ARBTF) (XFRA, XSTU, XBER: A2ASDS) ("Argo Gold") entered into a Letter of Intent and Area of Mutual Interest on to earn into oil and gas lands in southern Alberta, with exploration and development potential in Cretaceous clastic reservoirs.
The Letter of Intent involves two and a half sections of petroleum lands, and contemplates the re-completion of a producing borehole, The parties will work toward a definitive Farmin Agreement whereby Argo will earn a 70% working interest by assuming 100% of the drilling costs, subject to gross overriding royalties (GORRs). Production from the primary target reservoir is expected to be in the hundreds of barrels of oil production per day from the new and re-completed wells. Upside is recognized in other, secondary reservoirs.
The Area of Mutual Interest will enable the two parties to explore additional lands in a 50-50 partnership going forward, after Argo has earned into the initial section by drilling a well. Argo has engaged industry consultants to review geological, geophysical and engineering data, and believes there is large potential over multiple stratigraphic levels, and that the area could become a substantial ongoing business opportunity.
About Argo Gold
Argo Gold is a Canadian mineral exploration and development company. Information on Argo Gold can be obtained from SEDAR at www.sedar.com and on Argo Gold's website at www.argogold.com. Argo Gold is listed on the Canadian Securities Exchange (www.thecse.com) (CSE: ARQ) as well as (OTCQB: ARBTF) and (XFRA, XSTU, XBER: A2ASDS).
For more information please contact:
Judy Baker, CEO
(416) 786-7860
jbaker@argogold.ca
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-Looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available.
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