London-listed President Energy has acquired a 100% interest in assets in Argentina’s Rio Negro province from US giant Chevron.

President has paid Chevron $400,000 for the remainder of the concession period for the assets at Puesto Flores and Estancia Vieja which runs until November.

It will also pay $15 million to the Rio Negro province following ratification by the Provincial Legislature of an already signed extension agreement for a 10-year extension of the concession to November 2027, with a further $7 million payable through 2018.

President also revealed that once the extension agreement is ratified, local energy company Ediphsa will join it at the concession by taking a 10% interest.

“We are particularly pleased that we will be partnering with Ediphsa, the Rio Negro Province's own energy company, with whom we look forward to forging a strong, long term and mutually beneficial relationship,” President chief executive Peter Levine said.

“The acquisition provides significant forward momentum and an important platform for growth in the Neuquen basin where, in line with a committed strategy to expand, we continue to actively consider other appropriate acquisition opportunities capable of delivering strong shareholder value.”

Chevron has owned and operated the concession on a sole basis for the last 15 years and currently produces about 1200 barrels of oil per day.

President plans to boost output to about 3000 bpd through a work programme which will start next year and include re-completions, workovers and new wells.

Online

President acquires Argentinean acreage