www.presidentpc.com

Producing Oil/nat gas from the ELV field/USA....45% of Oil/Gas produced hedged at $100/bbl and $10.90 per mcf)




Drilling ELV.....Suspended until gain consent for sidetrack...casing and wellhead left in for future re entry

3D Seismics have been shot on PEL82 Otway Basin Australia....results are excellant!
PEL 82 Potential resource increased from 150mbbls Oil tooooooo 430mbbls Oil!



Also trading on Plusmarkets
http://www.plusmarketsgroup.com/data.shtml?ISIN=GB00B3DDP128/GBX/PLUS-exn

Some healthy sized buying here today.

Nudging up a bit more today....steady away!

It's going to get interesting real soon Chav. I could only get an on line quote to buy 100 of these shares towards the end of today. The price isn't going to hang around at this level if any kind of good news gets released this month.

RNS Number : 1505F
President Petroleum Company PLC
07 January 2010


PRESIDENT PETROLEUM COMPANY PLC

("President Petroleum" or "the Company")

Operations Update

Drilling programme of up to three wells planned for PEL 82 Licence in Australia

President Petroleum (AIM : PPC), the oil and gas exploration and production company with producing assets in the USA and exploration licences in Australia, announces an update on its operations.

Highlights

Drilling of PEL 82 in South Australia established as a priority targeting total prospective resources of 430 million bbls of oil or 630 bcf of natural gas

Programme of up to 3 wells planned

US production steady

South Australia Operations

PEL 82 Licence

Following the successful re-organisation of the Company in November 2009, the new Board has reviewed and confirmed the promising potential of the licence and is planning, as a priority, a drilling programme of up to 3 exploration wells, to be implemented as quickly as possible.

Review of the 3D seismic results and the structural mapping has confirmed a number of clearly identified well locations and associated prospectivity. The first two wells will target a combined resource of 70-80 million bbls of oil or 100 bcf of natural gas in the Waarre/Flaxman sands. Total prospective resources within the licence area are estimated at 430 million bbls of oil or 630 bcf of gas.

Drilling rig availability in Australia is limited, which will impact on the start date for drilling operations, but the Company is looking to secure an appropriate contract for a rig within the first quarter of 2010. Mobilisation costs are yet to be determined, but drilling costs are expected to be in the range of US$ 3-4 million per well. Negotiations with drilling contractors are underway and, in view of the prospectivity of PEL 82 and the Company's enhanced financial position, the Board has determined that the programme will initially be implemented on a 100% basis utilising the Company's existing resources.

PEL 132 Licence

The Company has reviewed its work commitments on the PEL 132 licence which has entered its third year of a five-year term. In the light of the significantly higher prospectivity and priority attached to PEL 82, President Petroleum plans to propose an amended work programme on PEL 132 to ensure retention of the licence, although this is not likely to include seismic or drilling activity in the near future.

US Operations
Production from existing wells at the East Lake Verret field has continued at a steady rate, in line with expectations, although gas flow rates were eased back slightly in December due to the colder weather. Natural gas production in Q4 2009 averaged 0.73 mmcfd, 19% up on Q3, whilst oil production was 4% higher, at 38.5 bbls/day, giving average Q4 production of around 160 barrels of oil equivalent per day.

Stephen Gutteridge, Chairman of President Petroleum, said:

"The planned 2010 drilling programme in Australia is a decisive step towards realising the promising potential of our current Southern Hemisphere assets, particularly the PEL 82 Licence. The new Board has moved quickly to review the existing asset base and take steps aimed at maximising its potential at the earliest opportunity.

"President Petroleum remains focused on achieving transformational expansion through acquisition and the Board continues to work towards achieving that goal in 2010."

Well some good news today LR2, in my opinion.

"President Petroleum remains focused on achieving transformational expansion through acquisition and the Board continues to work towards achieving that goal in 2010."


ELV acquisition came out of the blue with no warning so I guess the next one will as well.

True. SG won't leak info out. News will come when it is ready.

"Negotiations with drilling contractors are underway and, in view of the prospectivity of PEL 82 and the Company's enhanced financial position, the Board has determined that the programme will initially be implemented on a 100% basis utilising the Company's existing resources."

I think the important word there is 'initially' Chav.

I'm pretty sure they will bring in a partner, however having the resources to get the ball rolling on their own should ensure a decent deal in a JV.

still looks solid at around 50ish, good entry point with pel 82 progressing

Could struggle to hold 50p ish if there's no rig contract news for PEL82 within the next 3 months....acquisition news could save it of course.

Not much stock around today Chav. Get ready for some news.

glad i took my own advice after seeing it mentioned in the FT & daily mail today

i expect a bout of PR will lead up to some impressive news over the next few weeks

BUY BUY BUY

This w/e FT:
"President Petroleum, in which Peter Levine, founder of Imperial Energy, has a 29.9% stake, was in demand yesterday.
It's shares put on 8.2% to 55.75p as Evolution Securities took up coverage with a 'buy' rating & a 90p target.
'President Petroleum start 2010 poised for growth with a new management team & financial backing to build on the modest existing asset base in the U.S. ' Evolution said"

I would love to know how Evolution came up with that 90p target. Proving up the possible 430 million barrels of oil at PEL-82 would value it at around 2p a barrel with shares at 90p. If anyone acquires a copy of Evolution's work could they post the reasoning behind the 90p target. Many thanks.

90p pre news and drill is a fair price LR2, if pel 82 hits the black stuff naturally it will go into +s

I didn't mean to imply that 90p wasn't a fair price before striking oil. I just wondered how Evolution came to such a figure. If anyone has that information I'd be grateful if you could post it.

Nice movement upwards this morning...hope it can be sustained.

money for old rope at this price