Operated assets in Louisiana continue to generate some US$2.5 million pa in free cash after all opex, G&A and taxes AIM-listed President Energy, has announced the disposal of its entire non-operated, non-core beneficial interest in the East White Lake Field, Vermillion Parish, Louisiana, USA, with effect 1 January 2018. The Disposal of this peripheral asset to Alpha Imperial Corp for a total sum of US$525,000 reduces debt and at the same time provides more resources for President to concentrate on its core Argentine assets where production continues to increase with the successful workover programme at the Puesto Flores Field continuing and pilot testing of certain wells at the currently shut-in Estancia Vieja Field planned for Q1 2018. The effect on President of the Disposal is minimal with the Company's continuing share of its operated assets in Louisiana robust and stable, producing approximately 300 boepd, generating annualised free positive cash on current oil prices after all opex, G&A and taxes of some US$2.5 million per annum and the recent Triche operated acquisition performing substantially ahead of expectations. East White Lake Field The Company held a non-operated 25% working interest (21.8% net revenue interest) in the main Field and approximately 2% working and net revenue interest in the 'Houston' well also in the Field. In the calendar year 2017, President is estimated to have received a sum equivalent to approximately US$22k per month from the Field as a whole after opex, not insubstantial Operator Charges but excluding depreciation. Average production for the last 3 months of the year net to President is estimated at approximately 65 boepd and in general is declining with, in President's opinion, no possible significant economic uplift. Reserves at the Field are currently estimated by President at 154 mboe and therefore the Disposal makes no material difference to the Group's overall 1P and 2P reserves which remain at over 16MMboe and 25MMboe respectively. There will also be certain liabilities for de-commissioning and abandonment at the end of life of the Field for what was at one time a significant producing field with a number of wells. Taking into account the above and President's strategy to concentrate on operating its own increasing profitable producing fields, it was decided it was an appropriate time to dispose of the Company's interest in the Field. The Disposal After considering a recent offer from the Operator of a significantly lesser value, President's interest has now been sold to Alpha for the above sum together with the assumption by Alpha of the Liabilities and indemnification of President in respect thereof. Alpha will take over the US$150,000 Surety Bond for the Field, locked up through the Field life. Alpha is a company whose ultimate beneficial owner is Peter Levine, the Chairman and largest shareholder of President Energy, and the purchase price will be satisfied by reducing the sum of US$525,000 from the debt owed by President to IYA Global, another company whose ultimate beneficial owner is Peter Levine. The effect of this is to further lessen the debt and interest burden on the Company, which has already been reduced by the recent US$2 million debt capitalisation of monies owed to IYA thereby freeing up more of the existing financial resources for further growing the profitable Argentine producing assets. Original article link Source: President Energy 
President Energy announces sale of non-operated asset in Louisiana