President is pleased to provide an Operational Update on its Paraguay and Argentina Assets.
Argentina - Puesto Guardian Concession
President has successfully completed the four well work-over programme on the Puesto Guardian Concession on time and on budget. These were the first operations carried out since President acquired Operatorship in H2 2014.
The four previously shut-in wells are in the clean-up phase and currently flowing ahead of expectations at an aggregate of 190 bopd, a 92% increase in current field production, providing a significant return on the $1.6m investment in the four work-overs.
Realisation prices for oil remain strong at approximately $70 per barrel, with the additional oil from the work-overs generating a further $3 per barrel arising from Government incentives, giving net backs for the Company for this incremental production of $50 per barrel after paying royalties, revenue tax, opex expenses including processing and transport costs thereby enabling President to generate useful free cash flow from Argentina.