President Petroleum Company reported that The first two re-completions of the 2011 Louisiana programme are producing overall results ahead of expectations.

K2 well, East Lake Verret (ELV), Louisiana

Having been re-completed one month ago addressing 16 feet of new sand, K2 is currently producing at a steady rate of over 50 bopd net to President (300 bopd gross), substantially greater than projected.

Due to a premium to WTI being obtained for the oil, very low operational expenses and a favourable tax position, the minimal US$60,000 cost of the re-completion was paid back within 3 weeks, well ahead of budget, and the well is currently generating an excellent net post tax cash flow to President of approximately US$5,000 per day, five times greater than projected.

Well 51, East White Lake ("EWL"), Louisiana

This re-completion has recently been undertaken, addressing 26 feet of new very good quality sands. Even at this early stage, whilst still cleaning up, initial rates of some 300 boepd are being produced (90% of which is good quality oil).This significantly better than expected rate could well increase. President holds a 21.875% net interest in EWL, which enjoys similar price realisations and low tax benefits to ELV; if a steady state rate is achieved at these levels then a similar net cash flow as K2 would be achieved.

Further Work

Work is progressing quickly on a third re-completion (Well 50 at East White Lake), a sidetrack of McKerall 1 is expected to take place in September 2011 and drilling will commence very shortly on two new wells targeting proved undeveloped reserves also at East White Lake.

Peter Levine, chairman of President Petroleum (USA) Inc commented: "These commendable results reflect the success of the Company's strategy of making the most out of existing producing assets in Louisiana. The excellent net post tax cash flow being achieved demonstrates the prudent approach of maximising profits and minimising risk.

"We look forward with confidence to the rest of the Louisiana campaign and at the same time are gearing up for the large scale multi-well drilling programme on our Argentinian acreage (on schedule to commence by end September 2011), which, as in Louisiana, addresses proved reserves in President's already producing interest in that country."

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