President Energy (LON:PPC) confirms that under existing arrangements it expects to receive approximately $55 a barrel for its production until the end of the year in Argentina.
The company was commenting on recent industry speculation regarding the price that oil producers in Argentina will receive for their production.
"The Argentinian Government's intention to match local and international pricing has been in the public domain for some time, and, whilst it is quite probable that this will be in 2017, at the present time exact timings for this transition remain unclear though this could commence in the first part of 2017," the company said in a statement.
Using the Brent forward curve from 1 January 2017, President anticipates that the IRR of its planned well workover campaign in 2017 will not be materially impacted and is estimated to be approximately 150 per cent.
The Company therefore expects there to be no material difference in its anticipated year-end 2017 cash position.
The Company will continue to update the market on any material developments.
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San Leon Energy (LON:SLE) said it has signed and completed sales agreements for its interests in two Polish onshore assets, principally the Rawicz and Siekierki fields in the Permian Basin, to Palomar Natural Resources.
San Leon has sold its 35% interest in the Rawicz gas field for a cash consideration of $9 million, and the release of certain San Leon liabilities.
These liabilities include loans which were advanced by Palomar to the Company as a temporary carry of the drilling and testing costs of the Rawicz-12 and Rawicz-15 wells, and amount to approximately $3.0 million.
The Company has sold its 35 per cent. interest in the Poznan assets (largely the Siekierki field) for a consideration of €1 plus a 10% Net Profit Interest ("NPI") in the Poznan assets.
The NPI removes any further cost exposure to San Leon, while providing an interest in any future profits made by Palomar on the Poznan assets. The first $2.2m will be payable on closing, the next US$2.3 million by 30 November 2016 and the remaining $4.5m is due to paid to San Leon on or before 01 October 2017. An interest charge of LIBOR plus 5% will be applied to any sum not paid by February 1 2017.
The current book value of the assets being disposed of is approximately €12.1 million. The losses attributable to the assets in the last financial year were €0.
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The sector's biggest risers were Nighthawk Energy (LON:HAWK) and Nostra Terra Oil & Gas (LON:NTOG) - up by more than 17.2% and over 9.6% in late trading. The biggest fallers were Stratex International (LON:STI) and Xtract Resources (LON:XTR) - down by more than 10.2% and 10% in late trading.
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(LON:SLE) San Leon Energy PLC share price was -0.13p at 43.5p
(LON:STI) Stratex International PLC share price was -0.2p at 1.75p