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President Energy grabs remaining 50 per cent of Argentina play

30th July 2014

President Energy has purchased of the 50 per cent of the Puesto Guardian field in Argentina that it does not already own, together with operatorship

President Energy grabs remaining 50 per cent of Argentina play

Puesto Guardian is a 622 square kilometre concession located in the Noroeste Basin in North West Argentina.

“President has taken the opportunity, unexpectedly presented, to consolidate its Puesto Guardian interest and take full ownership and operatorship,” said Peter Levine, President executive chairman. “The price and terms of payment reflect good value to shareholders. We now have the control to put us in the best position to unlock the potential of this asset.

“We continue to be excited about President’s exploration prospects and expect results from the first well in Paraguay, the Jacaranda well, within the next 14 days.”

There are five fields in the concession, where maximum production of 9,000 bopd was reached in the early 1980’s. In 2010, President farmed in to 50 per cent of the concession on a non-operated basis. Gross production is currently 300 bopd at a current realised price of USD 77.2 per barrel. The concession borders on the Matorras and Ocultar exploration blocks, both currently 100 per cent owned and operated by President.

Puesto Guardian comprises five fields with many shut-in wells. A three well frac campaign of previously shut-in wells demonstrated proof of concept that many historically shut-in wells, properly worked over and hydraulically stimulated could generate an increase in oil production with good payback. President has recently carried out significant geological and geophysical work including reprocessing and re-mapping which has shown encouraging results for potential new reserve bookings.

This work includes the consideration of a deep gas Palaeozoic play in the Martinez del Tineo (MDT) field at Puesto Guardian where gross best unrisked prospective resources have been independently estimated at 570 bcf and 14.5 mmbbls of condensate. Any discovery of a live petroleum system in the Palaeozoic formation, currently being explored by President’s first well in Paraguay, would favourably impact on the risking of the MDT play.

President’s partner and operator in Puesto Guardian, Tripetrol Petroleum S.A. and Petrolera San Jose S.R.L., are raising finance for its on-going activities outside of Latin America. As a result, President has been able to expeditiously negotiate and complete the acquisition of the partner’s 50 per cent operated position in the concession.

 

 

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