It's been a slog identifying a particularly striking announcement of the week just passed.
However, I have previously reported on President Energy (LON:PPC) in quite favourable terms.
The company is run by Peter Levine, founder of Imperial Energy. After the massive success of Imperial, I think it is worth keeping an eye on progress at Mr Levine's new vehicle, President Energy (LON:PPC).
The company is currently prospecting in Paraguay, with producing assets in Argentina and Louisiana.
In October, President Energy announced a discovery in Paraguay:
http://www.investegate.co.uk/president-energy-plc-...
· President has made the first ever oil discovery in the Paraguayan Chaco
· Conventional light oil / condensate discovery - expected to be commercial (subject to
testing)
However, this was followed by the announcement on December 29th that:
a re-engineered well design and re-drill of the Lapacho x-1 well will be required to establish sustained commercial flow rates.
http://www.investegate.co.uk/president-energy-plc-...
i.e. the company cannot demonstrate a commercial discovery. Naturally that news knocked the shares significantly after they had run up following the October announcement.
CEO finishes with some glass half-full statements:
I am confident that President has established the presence of a large new resource base, and by applying the increased learnings and understanding gained so far, we will move forward to plan the forward drilling program to unlock full basin potential.
A home run is now looking less likely now and further into the future.
I will continue to monitor developments at President Energy (LON:PPC) though any future discoveries could be rendered moot by the recent decline in oil price. I imagine something similar goes for the company's Louisiana assets.
That's the nature of the oil game.
David O'Hara
Editor, AIM Prospector
