President Petroleum announced its interim results for the six months ending June 30, 2011.
- Corporate activity focused on acquisitions, culminating in the post period end acquisition of a 50% working interest in the Puesto Guardian concession in Argentina with existing oil production, and material upside potential through both exploitation of the reserve base and further exploration
- 1H focus on preparation for production drilling activity for 2H 2011
- Increasing bias towards oil in portfolio
- Investment in additional staff and business development activities
- Targeted total production by mid 2012 in the range of 1,300-1,500 boepd with further production drilling work being considered in 2H 2012
- Well A49 East White Lake, Louisiana ("EWL") identifies potential oil reserves at least 50% higher than expected
- New Louisiana Production well, McKerall 1 to spud within the next fourteen days
- In August 2011, announced two successful recompletions in Louisiana and a successful PUD well at LA Furs 23
- Production from Louisiana currently 210 boepd, prior to contribution from EWL 49 completion and any contribution from a successful McKerall 1
- Acquisition of a 50% interest in the Puesto Guardian concession in the Noroeste basin
- Operations on track and first production well to spud by the end of October as part of a five production well program
- President estimates net 2P reserves of 6.6MM barrels of oil, and an NPV10 of at least $60MM
- Targeting a significant increase in net production in Argentina from 200 to 1,200 barrels of oil per day by the middle of 2012
- Revenue of US $1.74MM (2010 1H: US $1.77MM)
- Gross profit of US $0.52MM (2010 1H: US $0.35MM)
- Operating loss US $15.52MM (2010 1H: loss US $ 0.88MM), mainly due to impairment charge on Kafoury 3
- Cash balance as at June 30 $23.20MM (2010 1H: $4.87MM), with no debt
- Tax losses from impairment to provide relief from corporate tax
John Hamilton, Interim Chairman of President Petroleum said, "With the announcement of the acquisition of the Puesto Guardian concession, President has commenced an exceptionally active period for the company. This entry into Argentina represents the first stage of implementing our stated strategy and generates an exciting platform for growth. In Argentina, drilling is set to commence on a 5 well program which should boost production materially.
Our recent drilling activities in Louisiana continue to deliver high value barrels of production. We have also seen further recent success with well A49 East White Lake identifying potential oil reserves at least 50% higher than expected.
With the completion of our commitments at PEL 82, Australia will for the time being, require minimal financial and management attention, but President continues studies on the encouraging geological results from the drilling of the Northumberland 2 well.
President looks forward with confidence to the high levels of drilling activity and new opportunities in Argentina. The Company will continue to pursue growth opportunities in its core areas of operations."