11th Sep 2014 07:55
LONDON (Alliance News) - President Energy PLC said Thursday it has made a new discovery at a well at the East Lake Verret site in the US state of Louisiana, said its average group production has increased against the first quarter and said it is generating income from its Argentina operations.
The company said the East Lake Verret discovery came at no cost to the company and said the new well has established gross initial production in August of 492 barrels of oil per day, along with 2,312 million cubic feet of gas per day, translating to around 875 barrels of oil equivalent per day.
President has a 3% royalty interest in the well, based at the Eagle Crest site, and has a 12% working interest in the project.
The well is expected to be brought into normalised production in the near future, President said, with additional exploration prospects at East Lake Verret and East White Lake being evaluated.
Production from the Louisiana site has increased since April, the company said, up to 230 boepd against a net production average of 200 in the first quarter.
Elsewhere, President said it is now generating GBP150,000 per month from the Puesto Guardian project in Argentina. The company acquired the 50% of the project it did not own in July and now recognises 100% of oil field production, currently at approximately 300 bopd.
President said it is working on rationalising the cost structure of the field and said it is looking to relocate management facilities to Salta, where the operations at based. The company is also working on a reserves update and a programme to materially increase production from Puesto Guardian.
President Energy shares were briefly up around 8% in opening trade on the back of the news, before paring back to be up 3.7% to 20.74 pence in early trade on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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