6th Oct 2015 08:32
LONDON (Alliance News) - President Energy PLC on Tuesday said it has entered into an agreement to acquire the 36% stake held by Pirity Hidrocarburos SRL in the Pirity Concession oil project in Paraguay, giving President complete ownership of the project.
Under the terms of the deal, President will pay USD500,000 in cash upfront, composed of USD200,000 on completion and three USD100,000 installments monthly thereafter.
Pirity will receive a 3% net profit interest on revenue from the project upon commercial production taking place, and will receive up to USD2.7 million in back-costs should President secure a farm-out deal for the project.
"This acquisition, with an upfront cost of USD500,000 payable by instalments with further monies payable dependent on success, will allow President the freedom, flexibility and scope to exclusively progress Pirity, and represents a mutually beneficial way forward for all parties," said Peter Levine, President's chairman.
Shares in President were down 1.8% to 9.26 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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