9th Oct 2015 07:41
LONDON (Alliance News) - President Energy PLC Friday said it has processed and interpreted the seismic data covering the Boqueron prospect, part of the Hernandarias block in Paraguay, which has led to "significant new prospective resources" being found.
However, the company said there is only a small chance of exploration success at the prospect and said it is not sure when it will be able to drill the prospect because it is being tight with its money and ploughing it into production.
The Boqueron prospect is thought to contain gross unrisked recoverable best estimate prospective oil resources of 302.0 million barrels of oil equivalent and prospective gas and condensate resources of 559.0 billion cubic feet of gas and 17.0 million barrels of condensate.
Those figures are based on owning 100% of the prospect, but President only holds a 40% interest in the Boqueron prospect, but is also entitled to up its stake to 80% over the next four years by investing around USD10.4 million toward drilling activity.
Although the very preliminary estimates are high across the prospect, President said the overall chance of exploration success is only 22%, but is still buoyant about the opportunity it presents.
"The very large Boqueron structure is a compelling drilling opportunity which is eminently risk covered and the success case economic even in the current depressed market environment," said Chairman Peter Levine.
"Taking into account the current volatile macro market environment, President's current focus is naturally on investment in production. Strategic considerations remain ongoing, and accordingly it is premature to provide a definitive timetable for drilling of an exploration well on Boqueron," said President.
"The company nevertheless continues to target commencement of drilling as soon as all relevant circumstances permit," it added.
President shares were trading up 3.2% to 9.88 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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