President Energy expects $55 per barrel of oil in Argentina

Oil and gas explorer President Energy said it expects to receive about $55 per barrel of oil sold in Argentina until the end of 2016, with a price drop "probable" next year.

The Argentinian government has said it intends to match local international prices of oil, "whilst it is quite probable" that this will happen in 2017.

Currently Brent crude oil is trading around $46 a barrel.

Using the Brent forward curve from 1 January 2017, the company expects that the initial rate of return of its planned well workover campaign next year will not be materially impacted, estimated at about 150%.

The AIM-listed company does not expect there to be no material difference in its cash position at the end of 2017.

On Tuesday, the company raised $20m in equity to invest in its work programme to increase production in Argentina and strengthen its balance sheet.

Shares in President Energy were down 3.62% to 5.59p at 0923 GMT.