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President Energy to build treatment plant; advances potential Paraguay deal
StockMarketWire.com
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Argentina-focused oil company President Energy said it expected to complete a $5 million treatment plant next year that would eliminate third-party treatment costs.
The company said the plant, to be built in Rio Negro province, was expected to be up in August and save it about $2.5 million per year.
Construction of the project would funded by a 'favourable' peso-based medium term loan provided by Banco Hipotecario.
President Energy also announced that negotiations for a stake sale of its assets in Paraguay with a 'reputable national oil company' were 'materially advanced'.
The next step in talks would be to negotiate and agree on legal documentation, with drafts already in circulation.
'President's principal focus has been on a contribution to well costs and finding a partner with sympathetic aims and ambitions,' it said.
'Inter alia under the terms of the deal under discussion, President will remain operator and retain a 50% interest in the relevant concession.'
'As stated in previous announcements, although there can be no guarantee of a successful conclusion of negotiations, with every tick in the box the prospects of a positive outcome come ever closer.'
'With that caveat, there has been material progress recently leading to the view that on current evidence there is a better than a 50% chance of a mutually satisfactory conclusion to the discussions.'
President Energy said it hoped to conclude matters before the end of the first quarter of 2021 with a view to drilling an exploration well within approximately 12 months.
Story provided by StockMarketWire.com
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