By Maryam Cockar

President Energy PLC (PPC.LN) on Thursday said it has bought Chevron Corp's (CVX) interest in its oil-producing assets in Argentina for up to $22.4 million, most of which will be paid to the Rio Negro province where the assets are situated.

The oil-and-gas company acquired Chevron's 100% operated interest in its fields at Puesto Flores and Estancia Vieja in the Neuquen basin in Rio Negro province, which is expected to add in excess of 1,200 barrels of oil per day to production.

President has paid $400,000 to Chevron for the remainder of the license concession period which ends in November. The company will pay $15 million to the Rio Negro province once the 10-year license extension has been put into legislature. A further $7 million is also payable to the province through to 2018.

Once the 10-year extension has been formalized, President will partner with Ediphsa, which will hold 10% of the concession.

Shares in President were up 0.38 pence, or 5.2%, at 7.63 pence at 0842 GMT.

Write to Maryam Cockar at maryam.cockar@dowjones.com

(END) Dow Jones Newswires

September 21, 2017 05:12 ET (09:12 GMT)

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