Argosy's management team has over 30 years of oil and gas experience and has been together since 1993. The members held their current positions with Olympia Energy Inc. from 1993 to 2004 and Accrete Energy Inc. from 2004-2008. The management team has a proven track record of low finding and development costs and low operating costs. The business strategy going forward includes plans to aggressively pursue accretive acquisitions and add land and production in its core areas.
Peter Salamon, President & CEO and Director
Ray Dobek, Executive Vice President, Exploration and Director
Tom Dalton, Vice President, Finance and CFO
Rick Campbell, Vice President, Engineering & Business Development
Norm George, Vice President, Production & Operations
Brian Mellum, CFA, Lead Director
Mr. Mellum is managing director and principal of Toscana Capital Corporation (Financial Services), managing director and principal of Formation Capital Management Ltd., a private merchant banking and financial advisory consulting company and a director for Nexstar Energy Inc. Prior thereto, Mr. Mellum was Senior Manager of National Bank of Canada's Corporate and Energy Group.
Mike Kanovsky, B.Sc., P.Eng., MBA
Mr. Kanovsky is the president of Sky Energy Corporation and serves as a director for Bonavista Energy Trust, Devon Energy Corporation, ARC Energy Trust, TransAlta Utilities Corporation and Pure Technologies Inc. (a technology company).
John Poetker, Director
Mr. Poetker is a senior partner at Borden Ladner Gervais, L.L.P., Barristers and Solicitors, currently practicing in the corporate and securities area. Mr. Poetker also has considerable expertise in the areas of litigation, labour relations, oil and gas, banking and commercial and corporate matters.
Kenneth Faircloth, Director
Mr. Faircloth has 35 years of oil and gas experience working as an energy analyst for Raymond James Ltd. and Richardson Greenshields of Canada Ltd. Mr. Faircloth is currently retired.
Jake Roorda, Director
Mr. Roorda is president, chief executive officer and a director of Canoe Financial Corp., which manages the EnerVest group of investment funds. He is a founder of Harvest Energy Trust and served as its president from 2002 to 2006. He was managing director of investment banking at Research Capital Corp. from 1999 to 2002 and co-founded PrimeWest Energy Trust in 1996.
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.
Total proved plus probable reserves for Argosy Company as at December 31, 2010 were estimated to be 4.1 MBOE. Reserves are comprised of 75% natural gas and 22% oil and natural gas liquids.
Argosy has a 95% working interest in 24 (net 19.8) natural gas wells and 5 (net) oil wells. The Company has 23,301 net undeveloped acres, gathering and sales pipelines and a 75% working interest in a natural gas processing facility. Argosy has earned 3200 acres by drilling 5 wells on the previously announced farmin arrangement with ExxonMobil and has an option to earn another 5120 acres. The next well planned on these lands is scheduled for Q3 of 2011.
An additional 20 potential locations have been identified on the company-owned 126.8 square kilometers of 3D seismic. Development of the Pearce area oil play continues using an enhanced recovery process. Initial production of these oil wells is estimated at 25-50 boe/d.
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. A horizontal test well is scheduled for early 2012.
Argosy purchased Radius Resources Corp. in May of 2010. Recently, 24 (21 net) sections of shallow rights in the southern block of Ante Creek were divested for total proceeds of $4.5 mm. The deep rights in 6 (5 net) of the divested lands were retained by Radius. The company currently holds a 43% (net) working interest in 12 sections of undeveloped lands in Ante Creek and has retained the original 272,000 BOE of proven plus probable reserves and 60 BOE per day of production from the original transaction.