President gives an operational update on its activities in North and South America.
Data acquisition of the contracted 603km of 2D seismic on the Hernandarias Block has been completed on time and on budget. The raw data are now being processed for interpretation.
Preliminary review of the first raw data processed in the field is cautiously encouraging. Final analysis will be available in approximately two months.
The recent four workovers continue to produce in aggregate approximately 200 bopd of steady production. The next series of workovers is now being considered together with new wells in due course. Realised price for President's production in June was US$71 per barrel with a similar figure expected for July production. Current daily aggregate production from Argentina is running between 380-400 bopd.
President has acquired net incremental production of approximately 100 boepd of which approximately 45% is oil with effect from August. In addition, a further US$12,000 per month of facilities fee income has been acquired. The total consideration paid by President for all such incremental production and added income was US$120,000. The increased production includes higher effective working interests in one well in each of President's two fields, from the newly crystallised entitlement under previously disclosed farm-out agreements, and more than offsets the decline rate incurred in the Company's East White Lake field.
A new production well at that field is due to spud during the course of this month and targeted to come on stream by the end of August. Current production, in Louisiana net to President and without any benefit from the new well, is running on the above basis at approximately 285 boepd with oil prices averaging at approximately WTI levels.
Peter Levine, Chairman, commented:'Operations in the key significant assets of Argentina and Paraguay are proceeding encouragingly and on plan.
Louisiana's small incremental production that has been achieved at good value to shareholders is a helpful addition to the Group's production that is currently delivering in excess of 675 boepd, an increase of 60% since the modest level at the start of the year.
Management awaits with cautious optimism the results of the interpretation of the seismic on the Hernandarias Block, following which we will provide an update on the Company's future plans in Paraguay.'