President Energy PLC Louisiana Update (9683D)
October 15 2018 - 1:00AM
UK Regulatory
TIDMPPC
RNS Number : 9683D
President Energy PLC
15 October 2018
15 October 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Louisiana Update
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets,
provides details of an addition to its Louisiana portfolio of
interests.
Jefferson Island acquisition
President announces that, through its wholly owned subsidiary
Meridian, it has acquired and signed a lease with the Louisiana
authorities for a 693-acre production block known as Jefferson
Island (the "Island") in Iberia and Vermillion Parish, South
Louisiana. The bonus paid to the State of Louisiana for the lease
was US$175k. Meridian will be the operator of the Block in which it
will be a 20% participant in consortium with other non-operator
holders.
Jefferson Island, with currently plugged and abandoned wells, is
one of five famous salt dome islands in South Louisiana and has in
the past been a prolific oil producer having first produced oil
some 90 years ago. Salt domes contain an abundance and a variety of
traps created by salt movement and the association with evaporite
minerals that can provide excellent sealing capabilities. The
Island is conveniently located within a manageable distance from
President's other assets in the area.
President and its partners take the view that there remains
significant undrained low risk potential in this sizable area with
the first stage to reprocess with the latest technology some 36
square miles of 3D seismic previously acquired over the Island.
With several leads already identified it is anticipated that a four
well drilling programme will commence sometime towards the end of
Q2 2019 lasting through the year with each well being some 2,500
metres deep and having an estimated dry hole cost of US$1.5
million, completed US$2 million (net US$300,000 and US$400,000
respectively). It is anticipated that President's share of the
costs will be met out of President's existing and/or extended
resources.
Hydrocarbons can be efficiently produced, tied in to existing
facilities and transported to market. Previous wells drilled in the
Island have generated initial production of up to 400 bopd of good
quality oil with compelling economics. The operations can be
conducted without any significant change in existing local or Group
G&A.
Once the seismic reprocessing has taken place, President will
update the market in the New Year on potential reserves and provide
more information on the forthcoming drilling programme.
Peter Levine, Chairman and Chief Executive commented:
"The low risk Jefferson Island opportunity complements our
existing cash flow positive Louisiana assets, can be managed
without material incremental cost and maintains President's
philosophy of being operator of our assets . In particular the
asset has, in our view, substantial upside which would have an
impact to our USA assets in 2019 in the context of both production
and reserves.
"I especially wish to acknowledge the significant positive
contribution of our country manager, Scott Daspit, and his team as
well as Neal Ryan at Nola Oil and Gas for his assistance in
bringing home the Jefferson Island project."
Contact:
President Energy PLC
Peter Levine, Chairman, Chief Executive
Rob Shepherd, Group FD +44 (0) 207 016 7950
finnCap (Nominated Advisor & Joint
Broker)
Christopher Raggett, Scott Mathieson +44 (0) 207 220 0500
BMO Capital Markets (Joint Broker)
Jeremy Low, Tom Rider +44 (0) 207 236 1010
Camarco Financial PR
Billy Clegg, Jane Glover, Violet Wilson +44 (0) 203 757 4980
Glossary
Bopd - barrels of oil per day
Scf - standard cubic feet
Notes to Editors
President Energy is an oil and gas company listed on the AIM
market of the London Stock Exchange (PPC.L) primarily focused in
Argentina, with a diverse portfolio of operated onshore producing
and exploration assets. The Company currently has independently
assessed 1P reserves in excess of 15 MMboe and 2P reserves of more
than 27 MMboe.
The Company has operated interests in the Puesto Flores and
Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin
of Argentina and in the Puesto Guardian Concession, in the Noroeste
Basin in NW Argentina. The Company is focused on growing production
in the near term in Argentina. Alongside this, President Energy has
cash generative production assets in Louisiana, USA and further
significant exploration and development opportunities through its
acreage in Paraguay and Argentina.
One of President Energy's largest shareholders is the IFC, part
of the World Bank Group and is actively pursuing value accretive
acquisitions of high quality production and development assets in
Argentina capable of delivering positive cash flows and shareholder
returns. With a strong institutional base of support and an
in-country management team, President Energy gives UK investors
rare access to the Argentinian growth story combined with world
class standards of corporate governance, environmental and social
responsibility.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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