Onshore Appraisal, Development and Exploration
President Energy Plc, the UK-based AIM-listed company, has commissioned Envoi to identify a strategic partner for the appraisal, exploitation and upside exploration of its four Concessions, which cover an adjacent area of 34,000 km2 over the entire prospective area of the Pirity sub-basin, onshore northwest Paraguay. Key to the opportunity is the underexploited nature of the sub-basin which is an extension of the proven-producing Tarija Basin in NW Argentina/Bolivia and the Olmeda Sub-basin in Argentina, where President owns three other concessions with production from five fields. Their activities in Paraguay to date have included extensive acquisition of 1,054 km 2D and 791 km2 of 3D seismic data, and two wells, which resulted in their Lapacho discovery. Two play fairways have been defined by President’s work including: i). the Cretaceous play known to extend from the Palmar Largo trend in Argentina, which remains essentially untested in Paraguay, and ii). the Palaeozoic play, a prolific producer in Bolivia and Argentina but newly discovered by President in the Pirity Basin. President has mapped over thirty Palaeozoic prospects and leads across their Concessions, with an estimated combined ‘mean’ potential of 3 billion boe unrisked prospective resources. Their focus is on the Pirity and Hernandarias Concessions, as Don Quijote and Pilcomayo are both still in the Prospection Permit stage. The proximity to existing infrastructure in Bolivia and Argentina, where gas prices are high (US$ 6-8 mmbtu), ensures access to profitable markets.
President operates the Pirity Concession 100%, which lies on the Argentinian border close to its producing fields. President’s second well in the acreage, drilled in 2014, resulted in the Lapacho discovery from which hydrocarbons were recovered, proving the active Palaeozoic play system. Severe hole conditions and poor cement isolation, however, prevented proper tests of the Silurian gas sands and oil found in fractured Devonian. In addition to a host of undrilled prospects, it is estimated that the Palaeozoic in President’s combined acreage contains over 10 Tcf gas gross prospective resource potential  where drilling costs significantly less than in Bolivia. Additionally, in Paraguay, Cretaceous prospectivity has been mapped with 3D defined potential of 357 MMboe resources in a low risk extension of the light oil play proven by existing fields 30-70km away across the border. The value of oil in Paraguay is further enhanced by the very favourable tax /royalty fiscal regime and Brent pricing. President now plans to spud a lowest risk well by March 2018 in order to convert the block to an Exploitation Concession and execute a field development plan.
President operates the Hernandarias Concession with 40% interest, with a right to earn up to 80%. The Concession covers the northerly extension of the Palaeozoic play trend proven by the 2014 Lapacho well and contains numerous prospects and leads. These include a large drill-ready three-way dip anticline against a major bounding fault, estimated likely to contain up to 1.5 Tcf resource potential in the Devonian and Silurian targets.
President is offering up to 50% to a strategic partner willing to fund its way into one or more of its acreage positions by initial contributions to the next wells planned in each of the Pirity and Hernandarias Concessions at a combined estimated gross cost of US$ 24 million.