TORONTO: 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, Argo Gold Inc. has finalized two letters of intent to earn into oil and gas exploration and development mineral lands.

The mineral lands are two separate Devonian oil prospects in southern Alberta. Argo Gold will earn a 100% working interest in the prospect lands, subject to a gross overriding royalty (GOR) to the holder of the mineral lands, in exchange for drilling one test well per prospect.

The oil prospects are seismically defined and are located within in a well-known producing trend with proven oil zones and surrounding infrastructure.

Four additional well locations have been identified on the two prospects. Estimated yield on the two initial test wells is estimated to be 100 bbl/day to 150 bbl/day in range and the estimated ultimate recovery (EUR) of the two initial wells is expected to be 275,000 bbl oil and 300,000 bbl oil respectively.

Argo Gold is a Canadian mineral exploration and development company.