26 Mar 2013 07:00
26 March 2013
PRESIDENT ENERGY PLC
("President" or "the Company")
Louisiana Update
Highlights
·; New Well A54 producing ahead of expectations
·; Production in Louisiana now highest for three years
·; New drilling prospects identified
Well A54 East White Lake (President 21.875% net revenue interest)
On January 30th, President announced a potential oil pay zone of some 30 feet on Well 54 at East White Lake. The well has now been perforated and is currently producing, ahead of expectations, approximately 50 bopd net to President. The well is exhibiting strong down hole pressure and is also producing associated gas.
Production in Louisiana
Taking into account the A54 well, additional production from two plug backs on existing wells and a modest contribution from an overriding royalty associated with a discovery on a recently unitised field adjacent to EWL, production from President's Louisiana fields is now at a three year high of some 250 boepd of which 85% is oil. Crude prices obtained in Louisiana currently are some US$15-20 per barrel higher than WTI and President continues to benefit from no corporate income tax on its production.
New Prospects
Global Geophysical Inc., who are shooting President's extensive 3D seismic programme in Paraguay, are due in approximately two months to provide President with the results of a 3D reprocessing exercise over an oil prospect at a President operated lease at East Lake Verret. A further announcement will be made when the exercise is complete.
President is actively evaluating other exploration prospects in its existing acreage, which are possible candidates for drilling at or around the end of the year.
Peter Levine, Chairman of President Energy PLC commented:
"Whilst Louisiana is non-strategic compared to President's primary focus in Paraguay and Argentina, the continued progress on all fronts is both pleasing and helpful.
By way of example an increase in production of 50 bopd produces to President net cash after operational expenses and tax of a sum equivalent to some $1.5 million per year. This constitutes a small but nevertheless useful contribution".
Dr. Richard Hubbard, PhD Geology Stanford University, with 39 years of experience in the oil and gas
sector, as President Chief Operating Officer, who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
Contact:
President Energy PLC
John Hamilton, CEO +44 (0) 207 016 7950
Ben Wilkinson, Finance Director +44 (0) 207 016 7950
RBC Capital Markets
Jeremy Low, Matthew Coakes, Daniel Conti +44 (0) 207 653 4000
Jefferies Hoare Govett
Simon Hardy, Max Jones +44 (0) 207 029 8316
Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme, Henry Lerwill