Project Profile
Location: Pirity Sub-Basin, Northwestern Paraguay
Reserves: 159 million barrels
Area: 16,000 km2
President Energy can hold up to a 59-60% interest following seismic and drilling program in the Pirity and Demattei Consessions in the Pirity Sub-Basin, Paraguay. The Pirity & Demattei Concessions total 16,000 km2 and are located in the Pirity Sub-Basin in Northwestern Paraguay. The Pirity Sub Basin is an extension of a proven petroleum system in the Olmedo Sub Basin on the Argentine side of the border, which has produced in excess of 150 million barrels of oil equivalent to date.
President’s Farm in provides sole operatorship and control over an almost entire Cretaceous rift basin of 16,000 km², with a proven petroleum system, which has been inaccessible for 25 years. President Energy entered into Farm-In Agreements to acquire certain Paraguayan Concession Interests comprising:
1. a farm-in to earn up to a 59% working interest in the Pirity Concession from Pirity Hidrocarburos (a subsidiary of PetroVictory)
2. a farm-in to earn up to a 60% working interest in the Demattei Concession from Crescent Global Oil Paraguay (a subsidiary of Crescent Oil)
Under the terms of the Farm-In Agreements, President has acquired an immediate 11.8% working interest in the Pirity Concession for an initial consideration of US$10 million in cash and a 3% working interest in the Demattei Concession for an initial consideration of US$2 million in cash. The total up-front payment in cash of US$12 million will be used to repay back costs to the Vendors in respect of each Paraguayan Concession. It is intended that further interests in each Paraguayan Concession will be acquired incrementally by the company as it fulfils the work programmes.
In December 2012, Degolyer and MacNaughton, the international reserve and resources auditors, completed an independent evaluation of President Energy\'s concessions in Paraguay. The estimated mean gross prospective recoverable oil resources assessed by D&M adjusted for probability of geologic success (P(g) ) are 159 million barrels, supporting President\'s internal estimates made at the time of the farm-in to the relevant concessions in Paraguay. The estimated mean net P(g) adjusted prospective recoverable oil resources to President Energy are 94 million barrels on the basis that President Energy fully completes its staged earn-in to achieve a 59% working interest in the Pirity concession and 60% interest in the Demattei concession. A further CPR Report is expected in H2 2013, following results from the 3D seismic programme currently being undertaken. MOU with Global Geophysical in place, providing state of the art seismic acquisition, processing and interpretation services, on a risk sharing basis. In October 2015, President Energy bought out its sole partner in the Pirity concession onshore Paraguay to give it full control of the block
Operators:
Pirity Concession
President Energy: Operator with 100% interest
Demattei Concession
President Energy: Operator with 3% interest (earn up to a 60%)
Crescent Global Oil Paraguay (a subsidiary of Crescent Oil): 97% interest
Contractors:
Degolyer and MacNaughton: Reserve and resources auditing
Schlumberger: Eighteen month contract with for the provision of project management and integrated drilling and completion services, including well site supervision and engineering for the drilling program
Queiroz Galvão Óleo e Gás: Firm drilling contract