14th Aug 2014 10:29
LONDON (Alliance News) - President Energy PLC said Thursday it has exercised an option to acquire a 40% interest in the Hernandarias block in Chaco region of Paraguay under a conditional farm-in agreement, with the possibility to take that interest to 80%.
The block covers 18,507 square kilometres, and its immediately to the north of the Pirity concession where President recently drilled the Jacaranda prospect. It believes it contains the same Paleozoic play system it confirmed at Jacaranda.
It said that three high-graded prospect areas have been identified from its recently acquired and historic 2D seismic data. It expects well costs to be lower at Hernandarias than at Pirity.
Under the conditional farm-in agreement, President will earn a further 40% upon fulfilling its remaining commitment under a USD17 million work programme. This programme will include seismic acquisition and one well over the next three years. Of the USD17 million, USD1.6 million has been spent during the 2013 seismic programme, President said, and the remainder will be spent over three years.
President's only partner on Hernandarias is Hidrocarburos Chaco SA.
"We are very pleased to have farmed-in to the Hernandarias Concession, which undoubtedly enhances the value of President's Paraguay interests and the optionality and flexibility for their development," said Chairman Peter Levine in a statement.
Shares in President were trading up 3.0% at 23.94 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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