30th Apr 2014 15:32
LONDON (Alliance News) - President Energy PLC Wednesday reported a narrower operating loss for 2013 as revenue rose and it cut administrative expenses
The company reported an operating loss of USD2.8 million for the year, narrowed from USD5.3 million in 2012, as revenue rose to USD13.4 million, from USD11.3 million, and administrative expenses fell to USD7.6 million, from USD8.5 million. It booked a USD447,000 impairment charge for the PEL132 licence it relinquished during the year.
It said the increase in revenue reflected a 29% rise in production in the US and a 7% increase in Argentina.
President has operations in Paraguay, Argentina, and the US state of Louisiana. It said it will start a three well drilling campaign in Paraguay in May.
"President is looking forward to the exploration drilling in Paraguay this year as we target the significant resources identified by last year's successful seismic programme. Argentina and Louisiana continue to contribute to the group production and cashflow while Argentina has the potential to deliver future production and reserve growth," Chairman Peter Levine said in a statement.
In a separate statement, President said a new independent experts report by Ausgeos Pty on its PEL82 Australian license had indicated a previously unidentified new unconventional play exists on the asset. The report attributed gross prospective resources of 904 billion cubic feet on a best (P50) case basis, President said.
"Notwithstanding that President continues to adopt a conservative view, the positive report has nevertheless re-energised ongoing discussions to find industry participation for further activity on PEL82. President has extended the PEL82 licence to September 2015 in order to provide time for consideration of those discussions," the company said in its statement.
President Energy shares ended down 2.2% at 32.75 pence Wednesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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