President Energy: Boqueron Prospect is 'Compelling Drilling Opportunity'
President Energy announced Friday that the largest prospect in Paraguay’s Hernandarias Block, Boqueron, could contain gross unrisked recoverable oil and gas resources of 302 million barrels of oil equivalent and 559 billion cubic feet of gas, respectively.
The latest figures, which are based on a gross 100 percent interest of the concession, follow the completion of the processing and interpretation of newly acquired seismic data over the Boqueron prospect. Although President Energy did not provide a definitive timetable for the drilling of an exploration well on Boqueron, the company stated that it “continues to target commencement of drilling as soon as all relevant circumstances permit”. The overall chance of exploration success at the site was judged by President to be 22 percent.
Peter Levine, chairman of President Energy, commented in a company statement:
“The results of the seismic program carried out earlier this year are very promising and underline the potential of the Paleozoic play in the Hernandarias Block. The very large Boqueron structure is a compelling drilling opportunity which is eminently risk covered and the success case economic even in the current depressed market environment.”
In August 2014, President announced that it had exercised its option to farm-in up to a maximum 80 percent participating interest in the Hernandarias Block. The company, which recently revealed it would be buying the remaining stake of a separate Paraguay asset, currently owns a 40 percent interest in the Hernandarias concession and is entitled to earn-in to a further 40 percent if it invests $10.4 million towards drilling activity within the next four years. President Energy’s sole partner in the concession is Hidrocarburos Chaco S.A., which is a locally owned company.
After posting a gross loss of $706,000 in the first six months of 2015 (2014: gross profit of $1.91 million), Levine said in President Energy’s financial results statement that the company has to be “vigilant on cost savings”, but admitted that its exploration prospects in Paraguay contain “real blue sky potential”.
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