President Petroleum leaps on Argentinian find

President Petroleum saw its share price jump almost a third after it announced significant potential finds at one of its Argentinian sites.

The explorer said analysis of its Martinez Del Tineo (MDT) Prospect identified "a play opening, significant gas-condensate prospect".

A report by petroleum consultancy GC estimated gross prospective gas resources at MDT of 570bn cubic feet with an additional 14.5m barrels of condensate, the firm said.

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GC put the potential value of the gas and condensate at MDT at $1.03bn, or $515 million net to President, representing 289 pence per share.

President said that subject to rig availability it would begin to drill at the site during 2012.

Nonetheless chairman Peter Levine, urged caution.

"Whilst the prospective resources and values are indeed extremely significant, it is important to recognise that these are prospective resources and we are thus adopting a careful, prudent and measured step by step approach to development of the whole licence area," he said.

"Notwithstanding the proper caution that must be exercised, the significant deep prospective resources so far identified coupled with the great potential of the higher oil bearing sections in the Cretaceous, which is increasingly becoming apparent, does suggest the scope for very material growth in shareholder value resulting from this recent acquisition".

That was enough to convince investors, who pushed the share price up 29% to 11.75p in early trading following the announcement.