President Energy Markets Paraguayan Assets

UK President Energy has appointed specialist global oil and gas adviser Envoi to help market farm-outs of its Paraguay interests, it said June 12. In a stock exchange update it said that  the assets in the land-locked South American republic cover some 34,000 km² and benefit from extensive 2-D and 3-D seismic data acquired by President as well as the two Paleozoic exploration wells drilled in 2014, which successfully identified the petroleum system with significant oil and gas shows.

"During the last two years, further detailed geological and geophysical work has been conducted which gives strong support to President's view as to prospectivity of its licence areas," it said.

President's management estimates that its Paraguayan prospect and lead portfolio identified to date "contains a combined mean unrisked prospective resources net to President of 3bn barrels of oil equivalent, including 10 trillion ft³ of gas resources and 300mn barrels of drill-ready oil resources in the extension of the light oil play proven by existing producing fields 30-70 km away across the Argentine border."

Envoi said the assets were near gas pipelines in Bolivia and Argentina, where prices were relatively high, between $6 and $8/mn Btu. Two play fairways have been defined by President’s work including the Cretaceous play known to extend from the Palmar Largo trend in Argentina, which remains essentially untested in Paraguay; and the Palaeozoic play, a prolific producer in Bolivia and Argentina but newly discovered by President in the Pirity Basin, it said.

William Powell