President Energy is planning to drill at least one gas well at Las Bases next year. Credit: Chovee.

UK-based oil and gas exploration firm President Energy has closed the acquisition of a 90% operating interest in the Las Bases and Puesto Prado concessions in Rio Negro Province, Argentina.

The company has now obtained provincial decrees for the concessions. The remaining 10% interest is to be held by provincial oil and gas company EDHIPSA.

The concessions carry a ten-year term with an option for renewal.

President Energy bought the operating stake in the concessions for a total consideration of $9.9m. The company has so far paid $8.7m to the province and the remaining amount will be paid within a year.

“It gives the company consolidated critical mass in the important Neuquén Basin.”

President Energy chairman and chief executive Peter Levine said: “It gives the company consolidated critical mass in the important Neuquén Basin, additional production and proven reserves together with a valuable owned and operated the pan-provincial gas pipeline and tie-in providing a key infrastructure footprint within the region, which can be utilised to deliver significant growth.

“This installed and valuable infrastructure, in addition to potentially producing but shut-in wells, allows President to begin generating revenues from these assets immediately, as well as unlocking a route to market for President’s Estancia Vieja gas.”

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The concessions are estimated to have proven reserves of one million barrels of 1P category hydrocarbon reserves, which can be expanded to four million barrels of 2P by the end of next year.

President Energy noted that the infrastructure facilities at the concessions include 60km of strategic pipeline.

The company intends to bring certain wells onstream that are currently shut-in on the Las Bases and Puesto Prado concessions.

The firm is currently carrying out sub-surface reviews and aims to drill at least one gas well at Las Bases in the first half of next year.

President Energy also has operated interests in the Puesto Flores and Estancia Vieja concession in the Neuquén Basin, as well as the Puesto Guardian concession in the Noroeste Basin.