15th Oct 2018 12:46
LONDON (Alliance News) - President Energy PLC said Monday that, through its subsidiary Meridian, it bought and signed a lease with the Louisiana authorities for a 693-acre production block known as Jefferson Island.
The price for the block, located in south Louisiana, was USD175,000.
Meridian will be the operator of the block in which it will be a 20% participant in consortium with other non-operator holders, the company explained.
The company said that "with several leads already identified", it anticipates a four well drilling programme to start at the end of the second quarter of 2019 lasting through the year.
Each well is expected to be 2,500 metres deep and have an estimated dry hole cost of USD1.5 million, net to the company of USD300,000.
President Energy will cover its share of the costs via its existing or extended resources, it explained.
President Energy shares were trading up 2.5% at 8.30 pence each.
Related Shares:
PPC.L