24th Jan 2014 07:54
LONDON (Alliance News) - President Energy PLC Friday said the results of an independent audit of its prospective resources are substantially ahead of expectations.
The oil and gas exploration and production company with operations in South America said the audit, by the consultancy company RPS Group PLC, was across its three 2014 drilling target prospect areas in Paraguay and based on extensive seismic studies of the sites conducted by President over the last 12 months.
The company said that according to RPS the three target areas are now estimated to have a gross mean unrisked prospective resource of 1.09 billion barrels of oil equivalent, which equates to 647 million barrels of mean unrisked oil equivalent to President and 130 million barrels of mean risked resources.
President Energy said earlier this month that the sites were expected to have a gross risked resource potential of in excess of 500 million barrels of oil equivalent.
The RPS test found that in the case of three success cases, the sites attribute net to President of USD11.7 billion in unrisked value and USD2.4 billion in risked value.
The company said the report demonstrates the opportunity to open up a significant new hydrocarbons province in Paraguay.
President Energy said it is on track to go into test production from the first well of its Paraguay exploration programme in May.
By Tom McIvor; [email protected]; @TomMcIvor1
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