President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets, provides details of an addition to its Louisiana portfolio of interests.

Jefferson Island acquisition

President announces that, through its wholly owned subsidiary Meridian, it has acquired and signed a lease with the Louisiana authorities for a 693-acre production block known as Jefferson Island (the “Island”) in Iberia and Vermillion Parish, South Louisiana. The bonus paid to the State of Louisiana for the lease was US$175k. Meridian will be the operator of the Block in which it will be a 20% participant in consortium with other non-operator holders.

Jefferson Island, with currently plugged and abandoned wells, is one of five famous salt dome islands in South Louisiana and has in the past been a prolific oil producer having first produced oil some 90 years ago. Salt domes contain an abundance and a variety of traps created by salt movement and the association with evaporite minerals that can provide excellent sealing capabilities. The Island is conveniently located within a manageable distance from President's other assets in the area.

President and its partners take the view that there remains significant undrained low risk potential in this sizable area with the first stage to reprocess with the latest technology some 36 square miles of 3D seismic previously acquired over the Island. With several leads already identified it is anticipated that a four well drilling programme will commence sometime towards the end of Q2 2019 lasting through the year with each well being some 2,500 metres deep and having an estimated dry hole cost of US$1.5 million, completed US$2 million (net US$300,000 and US$400,000 respectively). It is anticipated that President's share of the costs will be met out of President's existing and/or extended resources.

Hydrocarbons can be efficiently produced, tied in to existing facilities and transported to market. Previous wells drilled in the Island have generated initial production of up to 400 bopd of good quality oil with compelling economics. The operations can be conducted without any significant change in existing local or Group G&A.

Once the seismic reprocessing has taken place, President will update the market in the New Year on potential reserves and provide more information on the forthcoming drilling programme.

Peter Levine, Chairman and Chief Executive commented:
"The low risk Jefferson Island opportunity complements our existing cash flow positive Louisiana assets, can be managed without material incremental cost and maintains President's philosophy of being operator of our assets . In particular the asset has, in our view, substantial upside which would have an impact to our USA assets in 2019 in the context of both production and reserves.

"I especially wish to acknowledge the significant positive contribution of our country manager, Scott Daspit, and his team as well as Neal Ryan at Nola Oil and Gas for his assistance in bringing home the Jefferson Island project.”