President Energy ups stake in Pirity project in Paraguay

10th Jun 2014 07:48

President Energy has raised its stake in the highly prospective Pirity Concession in Paraguay.President has acquired LCH, a Paraguayan company which has a carried 5% participating interest in Pirity, lifting its own holding in the project from 59% to 64%.The 5% interest is being carried by Pirity Hidrocarburos (PH), President's partner in the concession, as part of a 2012 written agreement prior to President's entry into Pirity. The AIM-listed group is paying for the stake through the issue of 10.21m shares at 35p each, equating to around £3.6m, plus $250,000 in cash which PH will pay LCH upon spudding of the first exploration well.Further deferred payments will be made in the event of a commercial discovery at Pirity."I am pleased that we have been able to increase President's interest in the significant potential of the Pirity rift basin," said President Executive Chairman Peter Levine. "We have made this acquisition without incurring any additional capital cost for the exploration campaign which will commence shortly, with the first well spudding in a few days."BC