President Energy reports high production at Louisiana fields

AIM-listed oil and gas exploration company President Energy has reported strong production at its Louisiana operations.

The company, which has operations in the US, Australia, Argentina and Paraguay, reported that production from its Louisiana fields had reached a three-year high of 250 barrels of oil equivalent per day (boepd) of which 85% was recorded as oil.

The company added that crude prices obtained in Louisiana are currently $15-20 per barrel higher than WTI and President Energy said that it continued to benefit from no corporate income tax on its production.

With regard to its new well in Louisiana, "A54", in which President has a 21.875% net revenue interest, the company said that the well had been perforated and was currently producing, ahead of expectations, approximately 50 barrels of oil per day (bopd) net to President. It said that the well was exhibiting strong down-hole pressure and was also producing associated gas.

With regard to its new prospects, the company reported that Global Geophysical, which is shooting President's 3D seismic programme in Paraguay, is due in approximately two months to provide President with the results of a 3D reprocessing exercise over an oil prospect at a President operated lease at East Lake Verret.

Peter Levine, Chairman of President Energy, commented: "Whilst Louisiana is non-strategic compared to President's primary focus in Paraguay and Argentina, the continued progress on all fronts is both pleasing and helpful.

"By way of example an increase in production of 50 bopd produces to President net cash after operational expenses and tax of a sum equivalent to some $1.5m per year. This constitutes a small but nevertheless useful contribution," he added.

President Energy's share price was down 3.61% to 20p at 08:07 on Tuesday.

MF