President Energy offloads East White Lake field stake

Upstream oil and gas company President Energy has disposed its entire non-operated, non-core beneficial interest in the East White Lake field, Vermillion Parish, Louisiana, US, to Alpha Imperial.

The transaction, valued at a total sum of $525,000, enables the company to reduce debt and at the same time provides more resources for it to concentrate on its core Argentine assets.

In Argentina, the company continues to increase production with the successful workover programme at the Puesto Flores Field.

Pilot testing of certain wells at the currently shut-in Estancia Vieja Field is scheduled to take place in the first quarter of this year.

In a statement, President Energy said: “The effect on President of the Disposal is minimal with the company’s continuing share of its operated assets in Louisiana robust and stable, producing approximately 300boepd, generating annualised free positive cash on current oil prices after all opex, G&A and taxes of some $2.5m per annum and the recent Triche operated acquisition performing substantially ahead of expectations.”

In addition to a non-operated 25% working interest in the main field, the company held around 2% working and net revenue interest in the ‘Houston’ well also in the field.

The company noted that average production for the last three months net is estimated at about 65boepd.

According to the company, the sale is warranted owing to declining production and no possible significant economic uplift.

President estimates the field to hold reserves of 154mmboe and noted that the disposal does not significantly impact the group’s overall 1P and 2P reserves, which remain at more than 16mmboe and 25mmboe respectively.