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

a big fat 300

bopd?

sell signal on british bulls?

news alert

Cracking update today ;-)


RNS Number : 4374K
President Petroleum Company PLC
20 April 2010


PRESIDENT PETROLEUM COMPANY PLC


Operations Update

Q1 oil production increases by 50% over Q4 2009

Successful 4 well drilling and work-over programme

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

Q1 oil production up by 50% on Q4 2009

Successful 4 well programme completed in Louisiana, USA

Current net daily oil and gas production of around 300 barrels of oil equivalent per day (boepd), the highest level since June 2009

Production from East White Lake up 200% over last two months

Location for Northumberland 2 well on PEL 82 confirmed

Airborne gravity and magnetic survey over PEL 132 acreage successfully completed

Operations - Louisiana, USA

East Lake Verret

The Simmons 3 well (21.9% net revenue interest (NRI)), which was a minor gas producer has been re-completed as an oil producer, currently producing a gross 100 bbls/day. Gross daily revenue from this well has been increased from around US$500 to over US$8000.


East White Lake (21.875% NRI)

The A-41 side-track well was completed late last week and initial gross flow rates are significantly better than expected at 140 bbls/day of oil and over 400 mcfd of natural gas.

The work-over of the A-29 well was also successfully completed last week and the well was returned to production at a gross rate of 60 bbls/day of oil

Production from the A-52 well, brought on-stream in March, has settled at a gross 100 bbls/day and 80 mcfd of gas

Production


Production has been increasing steadily in 2010 as a result of the development drilling programme and in particular, the Company has successfully increased its exposure to the current strong oil price.

Net oil production in Q1 2010 was 60 bbls/day, a substantial increase on the 38 bbls/day in Q4 2009. With the contribution from the new wells, current April production has shown a further increase to 130 bbls/day of oil and around 300 boepd of hydrocarbons in total.

At East White Lake, in which the Company acquired a working interest in January, net daily hydrocarbon production has increased from 30 boepd in February to a current level of over 90 boepd.

Operations - South Australia

PEL 82

The initial well on PEL 82 will be named the Northumberland 2 well, located 3.2 km north-west of Port MacDonnell and will test the Flaxman and Waarre reservoirs. The combined target prospectivity for Northumberland 2 is 40 million barrels of oil or 54 bcf of natural gas, with a target depth of 3200 metres.

The Company has been engaged in negotiations with drilling contractors for potentially suitable rigs for the PEL 82 drilling programme. The Company is anxious to avoid excessive mobilisation costs, and has been seeking sharing arrangements with other operators in South Australia and Victoria. A satisfactory agreement in principle has now been reached with an Australian contractor who has a suitable rig currently outside Australia, and has already contracted to bring it into the country. Detailed discussions on the drilling contract and timetable are now underway.

PEL 132

The airborne gravity and magnetic survey on PEL 132 has been completed over 900 kms north-west of Lake Frome. Processing of the data will take two months.

Stephen Gutteridge, Chairman of President Petroleum, said:

"Our recent drilling programme in Louisiana has substantially increased production, particularly of oil, and cash-flow. Given the current strong oil price we will be looking to add further production from both fields wherever possible."

"The combined target prospectivity for Northumberland 2 is 40 million barrels of oil or 54 bcf of natural gas, with a target depth of 3200 metres".

40mmbbl x $80 / $1.55 / 45.45 mill shares = 45.42 per share.

Assume 50% profit after tax, expenses etc. = 22.71 profit per share.

Should see the share price move up if Northumberland 2 is successful.

And that's just the first drill.

how long will it take to extract 40m barrels?

Depends on how many producing Wells are drilled halifax!!!

so come up with a guesstimate, you cannot ignore the time factor when valuing oil in the ground.

40m bbls would last for years halifax....price of Oil only going up as the years go by so it will be gaining value all the time.

oil in the ground isn't worth anything until it is extracted.

Very true halifax however the speculative value of the 'possible' Oil in the ground does have a value which should reflect in the sp.

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:-)