25th Sep 2015 07:25
LONDON (Alliance News) - President Energy PLC Friday said a new independent report has shown the amount of reserves and prospective resources in its wholly-owned Puesto Guardian area in Argentina has risen by almost a third.
President said the new report, carried out by the international petroleum consultancy firm Gaffney, Cline and Associates, also has shown the net present value of its proven and probable reserves in the area has risen by 10%.
The report states that proved oil, or 1P reserves, have risen by 21% to 11.0 million barrels of oil, whilst proven plus probable, or 2P reserves, have risen by 28% to 18.1 million barrels. Proved, probable plus possible oil, or 3P reserves, have increased by 32% to 23.1 million barrels of oil.
The 10% rise in net present value of the 2P proved plus probable reserves brings its estimated worth to USD329.0 million.
"The independently audited reserves increase is a clear affirmation of the potential in our Puesto Guardian concession. We are now addressing the challenge of narrowing the ratio between production and reserves by concentrating on developing this asset to its maximum potential in respect of which a further announcement will be made in due course," said Chairman Peter Levine.
In addition, President said it has conducted further geological studies on its Paleozoic deep gas and condensate prospect at the Martinez Del Tineo field on the concession and on associated prospects at President's adjacent Matorras licence. As a result, it announced significantly increased management estimates of the prospective resources compared with previous estimates from back in 2012.
President said it now considers the Martinez Del Tineo field and the adjacent Matorras licence to have unrisked recoverable best estimate prospective resources totalling 6.6 trillion cubic feet of gas and 166.0 million barrels of oil across its entire portfolio.
"The MDT prospect remains tantalising. Whilst we must recognise the usual and subjective exploration risks, the potential prize from this on-shore, easily accessible asset in a country with a ready gas market currently offering a gas price of USD7.5 per million British thermal unit, is compelling," said Levine.
President Energy shares were up 3.2% to 9.55 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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