Junior oil firm President Energy confirmed Friday that it has seen encouraging preliminary results from seismic work in Paraguay, with recent drilling results in the country underlining the potential of the firm's Paraguayan asset.
Reporting its first half results for 2014, President said that it achieved average daily production of 389 barrels of oil equivalent per day during the six months to the end of June, compared with 365 boepd in 1H 2013.
President highlighted its successful Jacaranda well, which confirmed the presence of a thick live source rock of Devonian age. It said that this result de-risks the 32 large Devonian structural leads identified to date across all three of President's concessions in Paraguay. The firm believes there is as much as 28 trillion cubic feet in place among these Devonian shales.
President's Lapacho well – which spud on September 3 and is its second in the drilling campaign in Paraguay – is targeting a discrete, well-defined fault block trap that the firm's management estimates could contain gross mean, un-risked prospective resources of one trillion cubic feet and 30 million barrels of condensate.
President's current production comes from Louisiana in the US and Argentina. In Louisiana it said current production is averaging approximately 230 boepd, prior to the inclusion of its new Eagle Crest well. In Argentina, current net production is approximately 300 bopd.
The firm made a loss before tax of $1.9 million during 1H 2014, around $1 million less than in 1H 2013. Revenues for 1H 2014 came in at $5.8 million (1H 2013: $5.7 million).
President Chairman Peter Levine commented in a company statement:
"2014 to date has been a busy year with the commencement of President's exploration campaign in Paraguay. The Jacaranda well results give us optimism for our continued exploration campaign.
"Away from Paraguay we have continued to enjoy steady cash flow from our assets in Argentina and Louisiana. The prospects for these assets have been further enhanced by the increase in our interest in the Puesto Guardian concession, bringing both additional revenue and operational control, and through the ongoing improvements and recent exploration success in Louisiana."
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