President Energy claims against providers ongoing

President Energy updated the market on Friday, on its disputes with “certain service providers” in relation to the halted drilling of well DP1002 S/T in late 2016.

The AIM-traded firm was pursuing claims against two internationally-known service providers for what it currently assessed were “loss and damages of $10m in aggregate”, in relation to what the company considered as their actions and omissions in relation to the well.

It said mediation and inter-party discussions were continuing with lawyers representing all sides, with such service providers currently denying liability.

President said that, if it was not capable of “amicable settlement”, it would “vigorously” protect its position and pursue claims through the relevant courts or arbitration.

“The result of the Well DP1002 S/T was disappointing,” said chairman Peter Levine.

“It would in our view have likely to have been an excellent producer.

“Whilst the undrained oil is still there, it clearly set back the company's plans materially and the costs thrown away as well as lost production are high numbers.”

Levine said he remained hopeful that the company could, in good faith, arrive at a satisfactory settlement of all respective claims with the two relevant service companies with whom it was currently in discussions.

“It is important that we give ourselves and the other parties this opportunity to resolve matters in a mature and reasonable way.

“If however, such discussions do not bear fruit we will, protecting the interests of our shareholders, without further hesitation or delay, act to vigorously protect the company's position and pursue our legitimate and substantial claims whether it be through the courts or by arbitration as the case may be.”