South-America focused President Energy has taken over an additional 5% stake in the Pirity Concession in Paraguay via the acquisition of a concession shareholder.
The buy out of Paraguayan firm LCH has increased President’s stake in the licence to 64%, in return for the issue of 10,206,858 President ordinary shares (calculated at the rate of 35 pence per share) plus $250,000 in cash paid to Pirity Hidrocarburos through an existing carry arrangements under which the firm has agreed to pay LCH upon spudding of the first exploration well.
The agreement between the two companies ensures LCH is fully carried by PH through the minimum exploration work obligations of the Pirity Concession, which includes seismic and the total drilling of 15,000 metres of vertical depth.
The current three well drilling programme at Pirity extends to approximately 13,500 metres in total.
“I am pleased that we have been able to increase President’s interest in the significant potential of the Pirity rift basin,” said Peter Levine, President Energy’s executive chairman.
“We have made this acquisition without incurring any additional capital cost for the exploration campaign which will commence shortly, with the first well spudding in a few days.”