Argo's Oil Update

Argo Gold Inc. has provided its oil update for the period from January 1 to September 30, 2025, revealing a total production of 24,003 barrels, averaging 88 barrels per day. The company reported oil prices averaged CAD$68 per barrel, leading to a total revenue of $1,631,714 and a net operating cash flow of $913,157. However, the performance of the Lloyd 2 well significantly impacted Argo's operations. After a short production period of six weeks in Q4 2024, Lloyd 2 experienced a collapse and was subsequently shut down in June 2025 after almost six months of no output.

Due to ongoing low oil prices, Argo was unable to complete the partial re-drill of Lloyd 2 and planned drilling activities for Lloyd 3 within the same year. Monthly production figures for June through September 2025 highlight the company's challenges.

In June, Argo produced 75 barrels per day, generating $156,069 in oil revenue. July slightly improved with production reaching 80 barrels per day and a revenue of $178,304. However, August and September saw a decline; production dropped to 65.5 barrels per day, with revenues of $132,961 in August and $123,733 in September.

Throughout this period, the Lindbergh wells proved to be the primary contributors to production, particularly Lindbergh 1 and Lindbergh 3, despite the setbacks in other wells.

Argo Gold is a Canadian mineral exploration, development, and oil production company listed on the Canadian Securities Exchange and other international markets. Stakeholders can find more detailed information and updates on the company’s activities on its website and SEDAR.

Argo Gold Inc. (CSE: ARQ) recently reported its 2025 oil production figures, revealing a total output of 24,003 barrels, averaging 88 barrels per day. Despite the challenges faced, including the collapse of the Lloyd 2 well and underwhelming performance from other production sites, the company maintained an average oil price of CAD$68 per barrel, generating approximately CAD$1.63 million in revenue. In light of these developments, investors should carefully assess the implications for Argo’s stock.

Considering the dismal June to September production rates, particularly from the Lloyd 1 and the Lindbergh wells, it is crucial for stakeholders to recognize potential risks. The inability to re-drill Lloyd 2 or execute the planned drilling of Lloyd 3 has left a gap in projected output and profitability. Consequently, with total production averaging only 65.5 barrels per day in the latter two months of the quarter, and cash flow pressures apparent, the company’s near-term financial performance may remain under scrutiny.

Despite these hurdles, Argo Gold's ongoing operations at proven sites, particularly Lindbergh, should not be entirely overlooked. The slight month-on-month recovery in production rates during July signals potential stabilization. Investors might see value in this entity, especially as oil prices could remain favorable in a tightening global supply environment.

However, caution is warranted given the operational setbacks. Investors should closely monitor any strategic adjustments the company makes in its supplementary drilling plans. Any evidence of renewed exploration or enhanced production efficiency could drive confidence and positively influence stock performance. Until then, maintaining a cautious stance may be prudent as the company navigates these operational challenges.