Paraguay-focused explorer President Energy has increased its reserves estimate as it identified a potential unconventional play in its Australian prospect.
The new find followed a reviewed seismic testing of the PEL82 licence, in the Ottoway basin, which had previously identified a potential presence of gas and condensate.
The company has upped its contingent P50 resources (best estimate at 50% probable recovery) to 904billion cubic feet.
While the firm’s South American operations have taken priority over its Australian assets, President has extended the PEL82 licence to September 2015 as it is looking for a partner to develop the prospect further.
“Whilst our focus remains firmly on Paraguay as we approach our material drilling campaign starting in May, this is a positive development for President with the licence extension allowing us time to progress our discussions with potential partners,” said Peter Levine, President Energy’s chairman.
The announcement came alongside the company’s end of year report, indicating a gross profit increase of 63% compared to 2012, bringing the firm’s cash balance to $10million by December 31.
Upped production in Argentina and Louisiana contributed heavily to the upward trend, driving the increase of President’s total output by 18% year-on-year.
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