13th Jul 2015 07:50
LONDON (Alliance News) - President Energy PLC Monday said total production is currently around 675 barrels of oil equivalent per day, which is up 60% since the start of the year, and it reported developments across all of its assets.
The oil and gas company operating in South America and the US said it has completed the acquisition of 603 kilometres of 2D seismic data over the Hernandarias Block in Paraguay "on time and on budget". The data is currently being processed by the company.
"Preliminary review of the first raw data processed in the field is cautiously encouraging. Final analysis will be available in approximately two months," said President.
In Argentina, where the company is currently conducting workovers on its wells, it said four recent workovers are producing around 200 barrels of oil per day and the next series of workovers is being considered alongside the potential for the company to drill new wells.
President's production from Argentina in June achieved an average price of USD71 per barrel, which is expected to continue into July. That compares favourably to the Brent oil price, which was trading at around USD57 per barrel on Monday morning.
Current production from Argentina is between 380 to 400 barrels of oil per day.
"Operations in the key significant assets of Argentina and Paraguay are proceeding encouragingly and on plan," said Chairman Peter Levine.
In Louisiana in the US, President said it has acquired net incremental production of approximately 100 barrels of oil equivalent per day, of which approximately 45% is oil, with effect from August. It also acquired a facilities fee income worth USD12,000 per month.
For those acquisitions, President has paid a total of USD120,000.
"The increased production includes higher effective working interests in one well in each of President's two fields, from the newly crystallised entitlement under previously disclosed farm-out agreements, and more than offsets the decline rate incurred in the company's East White Lake field," said the company.
A new production well at that field is due to be drilled during the course of this month and targeted to come on stream by the end of August.
Current production in Louisiana net to President and without any benefit from the new well, is running on the above basis at approximately 285 barrels of oil equivalent per day.
"Louisiana's small incremental production that has been achieved at good value to shareholders is a helpful addition to the group's production that is currently delivering in excess of 675 barrels of oil equivalent per day, an increase of 60% since the modest level at the start of the year," said Levine.
President shares were up 0.1% to 14.02 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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