TIDMPPC

RNS Number : 7210B

President Energy PLC

09 October 2015

9 October 2015

PRESIDENT ENERGY PLC

("President" or "the Company")

HERNANDARIAS BLOCK, PARAGUAY

RESULTS OF SUCCESSFUL 2015 SEISMIC CAMPAIGN

Large Boqueron structure presents a compelling drilling opportunity

Paraguay Prospective Reserves Update

President announces significant new Prospective Resources from the completion of the processing and interpretation of the newly acquired seismic data over the largest prospect in the Hernandarias Block, the Boqueron prospect.

Highlights of Boqueron Prospect

-- An oil case with gross unrisked recoverable Best Estimate Prospective Resources as of 30 September 2015 of 302 MMBOE (* see Note below)

-- A gas/condensate case with gross unrisked recoverable Best Estimate Prospective Resources as of 30 September 2015 of 559 Bcf of gas and 17 MMBbls of condensate (* see Note below)

   --     The overall chance of exploration success is considered by the Company to be 22%

Peter Levine, Chairman, commented

"The results of the seismic programme 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."

Commentary

Whilst the interpretation of a number of other leads and prospects in Hernandarias continues together with an update to President's Resources in Pirity, the Company has completed its own estimates of Prospective Resources in the Boqueron Prospect.

The prospect is a three way dip structure of up to 60 square km and judged to be juxtaposed against Devonian source rocks.

The new seismic supports the correlation of the same Paleozoic section proved in Lapacho in a northwards direction through a series of structures culminating in the largest structure at Boqueron. At the Boqueron prospect the Icla, Santa Rosa and Sara Reservoirs discovered at Lapacho are judged to correlate to depths of 1600-2700m.

The source rocks are expected to be in the light oil generation window at these depths although the Company carry both an oil and a gas/condensate case given both are possible.

A new presentation on the Boqueron Prospect is available on President's website.

President is moving forward with planning, strategic considerations and discussions over its Paraguay portfolio now that the recent Pirity acquisition has been completed.

Taking into account the current volatile macro market environment, President's current focus is naturally on investment in production. Strategic considerations remain ongoing, and accordingly it is premature to provide a definitive timetable for drilling of an exploration well on Boqueron. The Company nevertheless continues to target commencement of drilling as soon as all relevant circumstances permit.

   *   IMPORTANT NOTE

Figures refer to Management Estimates on a gross 100% interest basis. President currently has a 40% interest in the Hernandarias Block and is entitled to earn-in to a further 40% on investing into the Block within the next four years a currently outstanding sum of approximately US$10.4m to be applied towards drilling activity.

Glossary of Terms

   Tcf.       Trillion cubic feet (gas) 
   Bcf.       Billion cubic feet ( gas)

MMBtu Million British Thermal Units ( gas)

MMbbls Million barrels of oil

MMBOE Million barrels of oil equivalent

Miles Biggins, Bsc Joint Honours University College London, with 25 years of experience in the oil and gas sector, is a Petroleum Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

Contact:

 
 President Energy PLC 
 Peter Levine, Chairman         +44 (0) 207 016 7950 
 Miles Biggins, COO             +44 (0) 207 016 7950 
 Ben Wilkinson, Finance 
  Director                      +44 (0) 207 016 7950 
 
 RBC Capital Markets 
 Jeremy Low, Matthew Coakes, 
  Daniel Conti                  +44 (0) 207 653 4000 
 
 Peel Hunt LLP 
 Richard Crichton, Ross 
  Allister                      +44 (0) 207 418 8900 
 
 Bell Pottinger 
 Gavin Davis, Henry Lerwill     +44 (0) 203 772 2500

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 09, 2015 02:00 ET (06:00 GMT)

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