Argos Resources share price is down today after the company announced a production guidance for 2020. The company expects to produce between 10,000 and 12,000 barrels of oil equivalent per day (boepd), which is below its previous guidance of 12,500 boepd. Argos attributed the lower production guidance to “unplanned downtime at one of our operated assets.”
Shares of Argos were down 5% in early trading on Tuesday.
Argos Resources Ltd is an exploration and development company with a focus on oil and gas in the Atlantic Margin. The company has a current market capitalisation of approximately CAD$75 million and is listed on the Toronto Stock Exchange (TSX: ARS) and the AIM market of the London Stock Exchange (AIM: ARS).
The Company’s strategy is to build a balanced portfolio of assets across the Atlantic Margin through a combination of farm-ins, strategic acquisitions and organic growth.
The Company’s primary focus is offshore Newfoundland, Canada where it holds two licences in the Flemish Pass Basin, including one operated licence. In Ireland, Argos also has an operated licence in the Slyne basin.
The shares have had something of a rollercoaster ride over the past year or so but seem to have found some stability around the 30p mark recently.
There was a slight uptick last week after news that drilling had begun on its operated Wicklow prospect off southern Ireland but this was short lived and it remains to be seen if this was just a blip or part of a more sustained move higher.
Home Retail Group Share Price
The Home Retail Group is a British retailer that owns several household names, including Argos, Homebase and Habitat. It has over 2,000 stores in the UK and Ireland and employs more than 28,000 people. The company was founded in 1992 and is headquartered in Milton Keynes.
The Home Retail Group’s share price has been on a bit of a rollercoaster ride over the past few years. In 2015, the shares were worth £1.50 each but by early 2016 they had fallen to just £0.60p. However, they have since recovered and are currently trading at around £1.20p.
Despite this volatility, the company remains one of the UK’s largest retailers with a market capitalisation of £2 billion pounds sterling.
Argos is the group’s flagship brand and accounts for around 60% of its total sales. It is a leading digital retailer as well as having a strong presence on the high street with 740 stores nationwide.
Argos sells more than 1 million products online and via its mobile app every week. Homebase is the group’s home improvement chain with 340 stores across the UK and Ireland .It offers customers expert advice and guidance on DIY projects as well as selling an extensive range of products for both inside and outside the home .
Habitat , meanwhile ,is a premium home furnishings brand with 21 stores across Europe . It offers stylish yet affordable furniture , lighting , textiles and accessories for contemporary living .
The Home Retail Group has struggled in recent years as consumers have increasingly shifted their spending away from big-ticket items such as furniture towards experiences such as holidays .
This has put pressure on profits at both Argos and Homebase . However ,the company has responded by investing heavily in digital transformation in order to become a truly multi-channel retailer . It is also closing underperforming stores (particularly those located on high streets) while opening new ones in out-of-town retail parks where there is less competition from other retailers .
Credit: en.mercopress.com
What Caused Argos Resources’ Share Price to Drop
Argos Resources’ share price dropped on May 8, 2019 after the company announced it had failed to find oil in its exploration well off the coast of Falkland Islands. This news came as a surprise to investors who were expecting Argos to announce a major discovery, and caused many of them to sell their shares. While it’s still early days, this setback could make it difficult for Argos to raise the money it needs to continue its operations in the region.
How Much Did Argos Resources’ Shares Fall by
Argos Resources’ shares fell by more than 50% on Thursday after the company announced that it had failed to find commercial quantities of oil and gas in its exploration well in the Falkland Islands. Argos said that while there was a “significant” hydrocarbon discovery at the well, known as Zebedee, it was not enough to be commercially viable. The news sent shockwaves through the London stock market, with Argos’s share price tumbling by 52.4% to 6p by the close of trading.
It is a major setback for the company, which had hoped to strike it rich in the Falklands after making a string of successful discoveries in nearby South America.
How Does Argos Resources’ Share Price Compare to Its Competitors
Argos Resources’ share price is currently trading at $0.37, which is significantly lower than its competitors. Its closest competitor, Anadarko Petroleum Corporation, is trading at $64.48 per share. However, Argos Resources does have a higher market capitalization than Anadarko Petroleum Corporation ($2.37B vs $64.48B).
Argo Investments | Interesting FY22 Transactions for the 2nd Largest ASX LIC
Conclusion
Argos Resources share price has been on a roller coaster ride in recent years. The company is a Canadian exploration and production company with operations in the United Kingdom, Argentina, and the Falkland Islands. Despite its impressive portfolio of assets, Argos has struggled to find its footing in the oil and gas industry.
In 2016, Argos was acquired by Premier Oil for $1.8 billion. The deal gave Premier a 70% stake in Argos and made it one of the largest shareholders in the company. However, the acquisition has not been without its challenges.
Earlier this year, Argos announced that it would be writing down the value of its assets by $900 million due to lower than expected reserves at its offshore fields. This news sent shockwaves through the market and caused Argos shares to plunge 30%. While Argos is still trying to recover from this setback, there is no doubt that it is an intriguing investment opportunity for risk-tolerant investors.
