Junior oil firm President Energy plc announced Tuesday that its wholly owned subsidiary President Energy Paraguay S.A. has reached a deal to acquire Pirity Hidrocarburos S.R.L.’s entire 36 percent interest in the Pirity Concession, located in northwest Paraguay.
Upon completion of the deal, which includes an upfront cost of $500,000, President Energy will operate and own 100 percent of the Pirity Concession. Two exploration wells were drilled on the concession last year, which both identified potentially significant hydrocarbon accumulations, according to President Energy. These two wells, Jacaranda and Lapacho, are currently suspended pending possible re-entry and flow testing.
Peter Levine, President Energy chairman, commented in a company statement:
“This acquisition, with an upfront cost of $500,000 payable by instalments with further monies payable dependent on success, will allow President the freedom, flexibility and scope to exclusively progress Pirity, and represents a mutually beneficial way forward for all parties.
“President’s focus in-country remains on completing the analysis of the results of the recently acquired seismic data on its Hernandarias Block, an announcement in respect of which will be made shortly, at which point the company will actively progress our strategy in Paraguay enhanced by our 100 percent ownership of Pirity.”
President Energy announced on July 13 that seismic data acquisition had been completed on time and on budget on Paraguay’s Hernandarias Block.
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