President Energy says that following the recent acquisition of operatorship and 100% ownership of the Puesto Guardian Concession, the Company has agreed to modify the monies payable under the sale and purchase contract following a request from the seller to accommodate its immediate capital needs.

Previously it had been agreed that a deferred consideration of US$ 1.88 million would be paid to the seller over two years, plus a contingent 5% overriding royalty on production capped at US$11 million. It has now been agreed that President will make a payment of US$800,000 to the seller with both the deferred compensation and contingent overriding royalty being cancelled.

Therefore the resulting total purchase price for the outstanding 50% of the Concession and operatorship is US$5.80 million compared to the previously agreed actual and contingent sum of US$17.88 million.

Tags: President Energy