President Energy announces that it has entered into an eighteen month contract with Schlumberger for the provision of project management and integrated drilling and completion services, including well site supervision and engineering, for its Paraguay drilling program.
President has now completed the acquisition of over 1000 km of 2D seismic in addition to the 793 km2 of 3D seismic acquired earlier this year on its two very large Concessions (16,000 km2) in the Pirity Rift Basin of the Paraguayan Chaco. The Company decided to acquire 300 km of further additional 2D seismic above the 800 km previously announced to add greater value, at a very competitive cost, to the newly identified prospective areas. There is now only 100 km seismic left to be acquired, which will bring the total to 1100 km of 2D in the 2013 seismic season.
Early seismic processing and interpretation results are very positive and show the possibility for a significantly expanded resource potential compared to the basin estimate of 159 mmb of oil risked published in the CPR last year.
At least two major structural play fairways have now been identified and although early in the interpretation, management believes the total resource potential of greater than 500 mmb oil risked could be a realistic possibility.
Peter Levine, Chairman, President Energy commented:
“We are very pleased to have reached this agreement with Schlumberger. Schlumberger has been involved with the project from the earliest stages of basin study and we feel their desire to tender these services in the operational phase is a significant vote of confidence for our project.
This contract marks an acceleration in activity as we remain on course for the spudding of our first well in Q2 2014. Negotiations are also in an advanced stage with drilling rig contractors, with long lead items to be ordered imminently.
With the World Bank (IFC) announcement and now Schlumberger coming on board, alongside our own experienced and expanded management, we are building a strong team ahead of our material drilling campaign next year.”