President Energy PLC Monday said it has made its first oil discovery at the Lapacho well in Paraguay, finding conventional light oil and condensate which it expects to be commercial following further planned tests and drilling.
President has continued drilling the Lapacho well to reach its original target, the 400 metre thick Santa Rosa formation, and the company said that once the QG1 rig has finished drilling the well, it is considering moving it so it can re-enter its suspended Jacaranda well, also in Paraguay.
President plans to commence first phase production during 2015 subject to successful testing, it added.
"This discovery represents a significant milestone for both President Energy and for the country of Paraguay. President has demonstrated beyond doubt that movable conventional oil does exist in the Paraguayan Chaco," said Chairman Peter Levine.
President shares were up 17.7% at 20.00 pence shortly after the open Monday.
Date: October 20, 2014