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.

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021
Free 6 issue trial then continue to