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

the value of the oil in the ground should be determined by any number of factors including cost and difficulty of extraction, local conditions,time,politics,logistics etc etc, it is not a simple arithmetic calculation.

Surely lots of oilies are part valued on 'estimated recoverable reserves'?

1P oil in ground commands a value of around $8 - $10 a barrel.

And don't forget that PEL-82 has a possible 430 million barrels.

Indeed hallifax...if you look into PEL82 you will find that it is close by a pipeline and that is one of the main worries/costs with producing.

LR2's figure is simple arithmetic for a very basic idea of current values, it does not take into account the dilution required for raising enough cash to see Pel82 through to production.

Current sp is very undervalued should Pel82 come up with 40 million bbls however and PPC current production nearly covers the current price.

around 300 boepd as forcast in march, more or less bang in with expectations

i see a 8 figure deal on the horizon

buy

Up 30% today, but not sure why.

Nice to see PPC bounce back into life with Rig news due.

PPC pushing onwards and upwards again today:-)

Fingers crossed it holds above 70 this time

When the RNS comes out saying that the Rig is in Oz then 70p will be left a long way behind.

PPC continues it's rise and will hopefully breakout of this range past 70p today.

Haven't seen the sp this high since 2007...70p broken and looking to break 80p....will there be enough news tomorrow to hold the gains?

Thought you'd deserted this Chav Fingers crossed and holding!

Long breaks of not a lot happening Maggie, but I never give up! AGM this morning so hopefully get something useful from it to build on the up trend in sp.

rig news would be nice

Transformational news would be better.

RNS Number : 3198Q
President Petroleum Company PLC
02 August 2010

Monday 2 August 2010

PRESIDENT PETROLEUM COMPANY PLC

("President Petroleum" or "the Company")

Acquisition, New Independent US Reserves Report and US Operations Update

US Reserves Increase by 450%

NPV10 Value of US Reserves assessed at US$310 million

President Petroleum (AIM: PPC), the oil and gas exploration and production company with producing assets on-shore in the USA and exploration licences in Australia, announces the acquisition of additional acreage onshore Louisiana, a new Independent US Reserves Report showing a significant increase in total hydrocarbon reserves, and an update on its US operations and drilling plans.

Highlights

Acquisition of highly promising deep exploration and production rights, with a projected net revenue interest of approximately 55%, at President Petroleum's existing onshore East Lake Verret ("ELV") field in Louisiana;

New Independent Reserves Report increases total Proved, Probable and Possible US onshore reserves by 450% to 12.9 million barrels of oil equivalent (mmboe) including the new acquisition;

US$310 million independently reported NPV10 of President Petroleum's Proved, Probable and Possible US Reserves;

Continued focus on creating shareholder value by moving 3P Possible reserves into 1P/2P Probable/Proved categories by use of the drill bit, as well as through further value enhancing acquisitions; and

First well addressing the newly acquired ELV deeper zone, the Kafoury 3 well, to be drilled in Q4 2010 and targeting gross possible reserves of approximately 19.5 mmboe comprising 110 bcf gas and 1.2 mmbbls oil

ELV Deep Rights Acquisition

At the time of the acquisitions of ELV and East White Lake ("EWL") in mid 2008 and early 2010 respectively, the Company highlighted the potential for further upside in addition to the proved, behind pipe and undeveloped opportunities.

At ELV, the Company has worked with local geoscientists, using their extensive knowledge of other fields and access to 3D seismic data, to build up a picture of the potential opportunities for further reserves. This work encompassed evaluation of existing producing zones and deeper potential which had been successfully exploited in neighbouring fields. This detailed and thorough study identified prospects in deeper zones on a much larger scale than existing producing zones, substantially enhancing the economics of onshore development at a time when offshore Gulf of Mexico opportunities will be limited or suspended and ultimately with higher costs.

President Petroleum, with the encouragement and support of its largest shareholder, Levine Capital Management Limited, has now been successful in acquiring the rights to additional leases on 440 acres at ELV over deeper zones to depths of approximately 14,000 feet. The US$0.5 million cost of lease acquisition and prospect development is being paid in cash, with President Petroleum currently expecting to take an initial Working Interest of 80% in drilling the first well to casing point and a Net Revenue Interest of approximately 55%. Following this latest acquisition, the Company is now in a position to publish the new US Independent Reserves Report and to outline plans for drilling.

The initial well addressing the ELV deeper zones, the Kafoury 3 well, is planned to test the extension of the known field pays of the Siphonina Davisi and Marginulina D-1 sands and to penetrate the deeper Planulina and Cristellaria 'R' sands, which are substantial producers in neighbouring fields.

The possible gross reserve potential is estimated to be 19.5 mmboe comprising 110 bcf of natural gas and 1.2 million bbls of oil with 15 bcf of gas and 120,000 bbls of oil in the known field pays and 95 bcf of gas and 1.1 million bbls of oil in the deeper zones. The drilling cost of the Kafoury 3 well is estimated at US$5 million and if successful, up to 6 further wells are likely to be drilled within 18 months.

Subject to the satisfactory ratification and completion of the lease documentation and the planning, permitting and unitisation arrangements, the Company expects to commence drilling Kafoury 3 in Q4 2010.

Independent US Reserves Report

The Company commissioned D-O-R Engineering of Baton Rouge, Louisiana to prepare an independent appraisal of the hydrocarbon reserves and future net income attributable to the Company's interests in ELV and EWL as at 1 April 2010. This is the first opportunity to produce a comprehensive report on these fields that takes into account the most recent acquisition, the prior asset purchase of EWL completed in early 2010, as well as the recent drilling and work-over activity and the extensive evaluation work on the additional prospects.

Summary of the Report - Net US Reserves and NPV10

Reserve

Category
Oil

'000 bbls
Natural Gas

mmcf
Hydrocarbons

'000 boe
NPV10

US$'000

Proved 1P
615.4
3102.6
1132.5
31,267

Probable 2P
148.3
356.7
207.8
6,178

Possible 3P
827.3
64505.2
11578.2
272,973

Total Reserves
1591.0
67964.5
12918.5
310,418






For comparison, in its Annual Report for the year ended 2009, the Company reported a total US net hydrocarbon reserve figure as at 1 January 2010 of 2.3 mmboe. The DOR Engineering report does not cover President Petroleum's Australian interests, which have been the subject of separate reports.



A summary of the DOR Engineering Report will shortly be made available on the Company's website www.presidentpc.com



Production



Following the successful drilling and work-over programme in the first quarter of this year, net production in April and May averaged 264 barrels of oil equivalent per day (boe/d), the highest level for 12 months, with a peak daily rate during this period of over 300 boe/d. Oil production was 111 bbls/d, over 40% of the total, compared with 25% at the end of 2009.



June and July production has been temporarily affected by further work on the Kafoury 2 and Simmons 3 wells at ELV. This low-cost, preventative work is aimed at inhibiting potential problems with sand in the production stream. The work on Kafoury 2 has now been completed and the well is back on-line. Work on Simmons 3 will commence shortly. Production at EWL remains on an upward trend having doubled since March. President Petroleum's net production in June was 205 boe/d with oil comprising 50% of the total.





Stephen Gutteridge, Chairman of President Petroleum, said:



"The substantial upgrade in our reserve position in Louisiana highlights the continued creation of shareholder value through the low risk, modest cost, onshore US acquisitions that we have delivered.



"In both Louisiana and Australia our objective remains the same - to convert our considerable 3P reserves and resources to proven and producing reserves. With the continuing support of our major shareholder, Levine Capital Management, President Petroleum is in a strong position to deliver growth both organically and by way of future acquisitions and progress continues to be made in this respect."

Tuesday 17 August 2010

PRESIDENT PETROLEUM COMPANY PLC

("President Petroleum" or "the Company")

Drilling Rig secured for Northumberland 2 well in South Australia

First well in a programme targeting prospective resources of 430 million bbls

Early 2011 drill date

President Petroleum (AIM: PPC), the oil and gas exploration and production company with producing assets on-shore in the USA and exploration licences in Australia, announces that it has secured a suitable drilling rig to drill the Northumberland 2 exploration well in the Otway Basin, South Australia.

Key Points

Drilling contract signed with Ensign International Energy
Northumberland 2 (President Petroleum 100%), the initial deep PEL 82 well, expected to spud no later than February 2011
Northumberland 2 commences a drilling programme targeting prospective hydrocarbon resources of 430 million bbls for the PEL 82 licence.
Contract includes an option for President Petroleum to use the rig for further exploration wells on PEL 82

Northumberland 2 Well

The Northumberland 2 well is located in the Otway Basin 3 km north-west of Port MacDonnell and will test the Flaxman and Waarre reservoirs. The combined prospective resources of these reservoirs at this location are assessed at 40 million barrels of oil or 55 bcf of natural gas and the well total depth is 3200 metres.

Landholder agreements have been completed and work on pad construction will commence shortly, weather permitting. Once underway, drilling is expected to take 30-40 days. The estimated well costs of US$6.5 million include substantial mobilization and demobilization costs. The Company has held extended discussions with other Otway Basin operators with a view to sharing these costs. These discussions will continue but in order to ensure the certainty of securing the rig and the drilling timetable, the Company will accept 100% of these costs if no sharing is possible.

PEL 82, South Australia

PEL 82, in which President Petroleum has a 100% working interest, is a highly prospective, on-shore, coastal licence in the Otway Basin, South Australia. Over the past two years the Company has re-processed older 2D seismic and completed an 88 sq km 3D seismic programme. The results of this have been evaluated by a number of geoscientists with extensive knowledge of the area, producing a highly positive assessment with total prospective resources of 430 million bbls for the licence.

The key target reservoirs are the Flaxman and Waarre sands, and in total 10 traps have been identified. As the Waarre sands underlie the Flaxman sands, the Company has been able to identify three possible drilling locations which can test both sands from the same well, with the Northumberland 2 targets being the largest.

In addition to the structural traps identified by the 3D seismic, a large structural high with two structural closures has been identified in the north of the licence. This large structure was not covered by the 2009 3D seismic shoot and, in addition to the drilling programme, the Company is considering further 3D seismic to locate additional drilling targets.


The PEL 82 licence was renewed last year and is currently in the first year of a new 5 year term.

Ensign International Energy

Ensign is an Australian based integrated drilling company and a wholly owned subsidiary of Ensign Energy Services Inc of Canada, which has more than 50 years of drilling experience.

Stephen Gutteridge, Chairman of President Petroleum, said:

"The shortage of suitable drilling rigs in Australia and the consequent high costs of mobilization are significant problems for Otway Basin operators, but we are pleased to have secured a rig from Ensign for our initial exploration well on PEL 82.

"The Northumberland 2 well marks the beginning of the next phase of activity on PEL 82, aimed at converting the significant prospective resources into reserves and production. In addition to drilling activity, we plan to discuss further investment, such as additional 3D seismic, with the South Australian authorities."

yahoo !!

looking good for a good run up over the next few weeks