Peter Levine, chairman of President Energy (LON:PPC), says the company will continue to take advantage of the fact that energy companies in Argentina still receive US$70 for each barrel of exported oil.
Brent crude prices have fallen below US$40 a barrel worldwide, but the state controls the price of oil exports in Argentina in order to guarantee domestic supply.
This morning, President told investors that its ongoing two well work over programme in the country has so far given “very encouraging” results.
Production testing, at intermediate steps in the programme, achieved a two-day rate of 175 barrels of oil per day and the company highlighted the result as being “substantially in excess of expectations”.
On those test days, overall group production reached in excess of 700 boepd, which is a new daily record for the company.