Ahead of its interim 2014 results announcement on 12 September, President is pleased to announce a successful new discovery well at East Lake Verret, Louisiana, and an increase in Group production from an average Q1 net production of 385 boepd to currently approximately 530 boepd prior to inclusion of the new East Lake Verret discovery.
Highlights
- Successful exploration well in Louisiana, drilled at no cost to President
- Current group production up 37% from Q1 2014, following the July Argentine acquisition
- Argentina now generating positive cash flow of over US$150,000 per month
Louisiana
At East Lake Verret, President was fully carried for the Eagle Crest exploration well. The well was a discovery and established a gross initial production in August of 492 bopd and 2,312 mcf of gas per day (total of approximately 875 boepd). President has a gross overriding 3% royalty at Eagle Crest from start of production, and also a 12% Working Interest coming into effect following well pay out, which is expected to be mid-2015. President also manages the production handling from Eagle Crest through its controlled field facilities, generating additional income. It is expected the well will be brought on normalised production in the near future. Additional exploration prospects at both East Lake Verret and East White Lake are being evaluated.
Prior to Eagle Crest, Louisiana net production held at approximately 230 boepd since April. Production has increased from an average Q1 net production of 200. Prices remain strong at approximately US$100 per barrel. Cash flow from operations continues to generate funds for the wider group.
Production Increase- Argentina
Following the acquisition of the additional 50% of Puesto Guardian, President now recognises 100% of field production, currently approximately 300 bopd, with realised prices stable. With President now the operator, active steps are being taken to rationalise cost structure of the field, and to relocate the management of the field to Salta where the operations are based. President is engaged in detailed work focused on a reserves update and a programme to materially increase production. Since taking over operatorship, positive cash flow contribution to President has increased and is currently running at US$150,000 per month.
Peter Levine, Executive Chairman, commented:
“In parallel with the high profile Paraguay exploration, President continues to focus on production activities from its over 13 mmbo of 2P oil reserves. The result of Eagle Crest in Louisiana is very pleasing particularly taking into account that it was at zero cost to the Group. Following the acquisition of the whole of Puesto Guardian, there is renewed determination to realise the potential of this concession and its various fields which we originally identified when we purchased our initial stake.”
