South-America focused President Energy has been granted the option to farm-in a new prospect in the Chaco region of Paraguay.
Subject to government and regulatory approval, President will take up to 80% maximum participating interest and act as operator in the Hemandarias Block, which has reserves of up to 14billion barrels of oil equivalent.
The firm today said it had agreed to fund the first £10.4million costs of a work programme, including one well drilled to test the Devonian at any time within the three-year exploration phase.
The large block, which extends to 18,507km2, is located north of President’s existing Pirity and Demattei concessions.
The firm says on completion of the agreement, it will operate a 34,507km2 block in the area covering almost the entire prospective Pirity Rift Basin, securing a controlling position in the Chaco region.
“The Hemandarias Block is a promising one, in which President has a significant level of understanding based on its work in the Pirity and Demattei Concessions,” said chairman Peter Levine.
“We are plased to have agreed the right to work in this area with the existing permit holder, Hidrocarburos Chao S.A.”