Argo Gold – September 2024 Update
Argo finished calendar 2023 with an ownership interest in 3 operating oil wells in the Lloydminster area of Alberta, Canada.
During 2023, Argo invested capital of CAD $1.8 million to participate in the development drilling of 3 new horizontal oil wells into the Sparky formation.
All 3 oil wells were successfully drilled, completed, equipped, and brought on production.
Argo’s total oil production for 2023 was 17,533 barrels oil generating 2023 oil revenue of $1.17 million (before royalty payments) and a net operating cash flow total of $0.78 million (before non-cash oil depreciation and accretion).
| Full Year 2023 | Argo’s oil production | Argo’s 2023 Oil Revenue | Argo’s 2023 net operating cash flow |
| Lindbergh 1, Lloyd 1, Lindbergh 2 | 17,533 barrels | $1.17 million | $0.78 million |
For H1 2024, Argo’s oil production was 19,503 barrels oil generating oil revenue of $1.43 million (before royalty payments) and a net operating cash flow total of $0.88 million (before non-cash oil depreciation and accretion).
| H1 2024 | Argo’s oil production | Argo’s H1 2024 Oil Revenue | Argo’s H1 2024 net operating cash flow |
| Lindbergh 1, Lloyd 1, Lindbergh 2 | 19,503 barrels | $1.43 million | $0.88 million |
In late August 2024, a second horizontal oil well at Lloyd was drilled and completed in the General Petroleum (GP) Formation. Argo’s interest in the second oil well at Lloyd is 18.75%. Development drilling of a third oil well at Lindbergh is planned for Q4 2024. On September 9, Argo released its July 2024 Oil Production as per the attached press release.
Argo’s Year-End 2023 Oil Reserves were 574,300 barrels which includes the current operating oil wells and three future planned oil wells at Lindbergh. The net asset value of the reserves is CDN$30 M at a 0% discount rate, CAD$19 M at a 10% discount rate, and CAD$16 M at a 15% discount rate. The year-end reserve number does not include the second oil well to be drilled at Lloyd in summer 2024.
| Year-End 2023 Oil Reserves | Argo Gross Oil | Argo Oil net of Royalties | 0% NPV | 10% NPV | 15% NPV |
| Total Proved plus Probable | 574,300 bbl | 476,000 bbl | $30.3 million | $19.6 million | $16.5 million |
Argo has a Growth Agenda with plans to continue to participate in development drilling of oil wells.
Argo Gold is also the 100% owner of two gold projects in northwestern Ontario, the Uchi Gold Project and the Talbot Lake Gold Project.
Argo Gold recently acquired a 100% ownership position of over 210 square kilometres in the emerging and underexplored Rottenstone Metallogenic Belt.
Argo Gold currently has 73 M shares outstanding. Institutions and insiders own 50% of the shares outstanding. The current CAD $6 million market capitalization is a compelling opportunity.
CSE: ARQ, OTC: ARBTF and XFRA, XSTU, XBER: A2ASDS
Judy Baker
CEO, Argo
(416) 786-7860
jbaker@argogold.ca
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