The acquisition will increase President Energy's daily production by over 10%
President Energy has agreed to acquire an exploration contract from Compañia General De Combustibles (CGC) in Argentina.
The UK-based oil and gas Company said that it has conditionally agreed to take a 100% interest in the Angostura exploration contract area in the Rio Negro Province.
Located directly to the west of the company’s Las Bases Concession, the exploration contract covers 384km2 and and President Energy’s pan-regional pipeline passes through the south west corner of the area.
The acquisition will increase the company’s daily production by over 10%.
Angostura currently produces 80,000 m3/day of gas and 50bopd
Presently, 80,000 cubic metres of gas per day and 50 barrels of oil per day are drawn from the licence, representing in total slightly in excess of net 500 boepd, the company said.
Currently, all the gas is compressed and dehydrated within Angostura, sent by pipeline to President’s Las Bases facility and then conveyed by the company’s own pan-regional gas pipeline to offtakers.
The company said that the oil will be taken by truck to Las Bases/Puesto Prado and added to President’s existing oil production.
President Energy Chairman Peter Levine said: “This corporate action represents a continuation of the strategy of leveraging on our critical mass in Rio Negro and, in this case in particular, our strategic gas pipeline.
“The contemplated assignment would increase our production by over 10% whilst at the same time providing synergies and enhancing economies of scale.
“I welcome the contemplated investment of CGC, a substantial well-known and respected oil and gas Company, as a shareholder in the Company.”
The acquisition is subject to the consent of the Rio Negro Province to the assignment of the exploration contract.
In November 2018, President Energy had said that its drilling program at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province had yielded positive results.