President Petroleum Acquires Stake in Argentina Licence

President Petroleum has entered a farm-in agreement to acquire a 50% working interest in the CNO-8 Puesto Guardian licence in Salta Province, Argentina.

The acquisition will increase the firm’s estimates of net 2P reserves by approximately 600%, based on an assessment performed by internationally recognised reserve auditors.

President Petroleum will pay $1.5m in cash and 5,102,041 shares worth $2m, along with $10.75m carry costs on a $21.5m drilling programme, as well as one million warrants to purchase President shares at £0.50 per share.

President Petroleum chairman Peter Levine said the acquisition has a solid foundation around existing producing fields, and holds significant exploitation potential with the ability to materially grow production through a near term drilling and completion programme.

“This production is complemented by our production assets in Louisiana, where as previously announced we are embarking on a series of PUD wells and workovers,” Levine said.