3 Mar 2015 16:23
3 March 2015
PRESIDENT ENERGY PLC
("President" or "the Company")
PARAQUAY UPDATE
President Energy notes the announcement from Petro-Victory Energy Corp. ("Petro-Victory"), the Company's 36 per cent net working interest partner in the Pirity Concession, relating to certain court action which has allegedly taken place (without any notice being given to President) in the Republic of Paraguay on 2 March 2015, in relation to that concession.
The management of President strongly believe that any claims made by Petro-Victory are without foundation and that Petro-Victory continues to be in default under the relevant Joint Operating Agreement (JOA), having failed to pay its proper contribution to the work programme currently amounting to US$1.8m.
As a consequence of this, President has the right to require under the terms of the JOA that Petro-Victory transfer its interest in Pirity at a discounted value as of today, 3 March 2015.
Whilst President will, in a measured and professional manner, take all necessary legal steps to both protect its interests and resolve the matter expeditiously, this does not impact on President's strategic initiatives and upcoming work programme in Paraguay where the current focus is on the prospective Hernandarias Concession in which Petro-Victory has no interest.
Contact:
President Energy PLC
Peter Levine, Chairman +44 (0) 207 016 7950
Miles Biggins, COO +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
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor +44 (0) 207 523 8000
Bell Pottinger
Gavin Davis, Henry Lerwill +44 (0) 203 772 2500