Argosy Energy Inc.
TSX : GSY

Argosy Energy Inc.

November 23, 2010 17:12 ET

Argosy Energy Inc. Reports Progress to Date

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2010) - ARGOSY ENERGY INC. ("Argosy") (TSX:GSY), a junior energy company focused on the acquisition, exploration, exploitation and development of oil and natural gas in Western Canada is pleased to announce the progress that it has made to date.

The Company has come a long way in the last two years. Emerging in the fall of 2008 with $26million of bank debt amidst a Global financial meltdown and falling gas prices, it was clearly evident that the task to ensure future growth and fiscal health would be challenging. Today we are proud to say that we have reduced our debt by over 68% and we have retooled our exploration program with a greater emphasis to oil production.

In August we completed the rationalization of our Saxon property to an undisclosed purchaser for $16.7million. This property presented significant logistical challenges that management felt were limiting the Company's ability to execute on other opportunities. Management also believed that the Ante Creek property, located 20km north of Saxon, provided and excellent substitute and unrestricted access. This property was included in the corporate purchase of Radius Resources Corp. that was made during the second quarter of 2010. The Ante Creek property offers excellent exposure to the Montney Formation prospect with higher oil yields and at shallower depth than at Saxon. Furthermore it offers excellent exposure to deeper unconventional prospects.

At Pouce Coupe Alberta, we intend to drill a horizontal oil well targeting the Boundary Lake member of the Triassic Charlie Lake Formation before yearend. Analogous horizontal oil wells in this area have shown exceptional production results and increased ultimate recoveries compared to vertical wells. The Pouce Coupe property was also was also included in the corporate purchase of Radius Resources Corp.

The Company is well positioned in the Upper Devonian Exshaw/Wabamun Formation play which is developing beneath our Claresholm gas property. This project coined "the Alberta Bakken" prospect, while still in its infancy, has garnered considerable interest with Industry players acquiring large land positions through record Crown land sale purchases, negotiations on First Nations Treaty Lands and Corporate acquisitions. Argosy Energy has exposure to 33.5 sections of lands on this prospect most of which has company owned proprietary 3D seismic coverage. In October Argosy commenced the drilling of a vertical well which targeted the extension of the Bow Island gas zone and was deepened to evaluate the reservoir characteristics and content of the Upper Wabamun section. Results of this well are encouraging and suggest that horizontal technology, which is currently being used by a number of operators in this area, would lend itself on the Argosy lands. The Company is planning one additional Wabamun Formation test well at or near year end.

Argosy has filed its Unaudited Financial Statements and related Management Discussion and Analysis for the interim period ended September 30, 2010. Copies of these documents can be obtained on Argosy's website, on SEDAR at www.sedar.com.

In addition, Argosy's November 22, 2010 SEPAC corporate presentation is available on its website at www.argosyenergy.com. Additional copies of these documents may be obtained by contacting Argosy directly.

Disclaimer

Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that this Company expects or anticipates may or will occur in the future, are forward-looking information. This news release contains forward-looking information on management expectations regarding future plans and intentions including future production, future drilling, project start-ups and future capital spending. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Actual results or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include but are not limited to changes in general economic and market conditions and those described in the Corporation's public filings on SEDAR. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances. Any forward-looking information contained herein is expressly qualified by this statement.

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