President Energy acquires remaining stake in Paraguay project

Oil and gas explorer President Energy has agreed a deal to buy Pirity Hidrocarburos’s 36% stake in the Pirity Concession oil in Paraguay.

The agreement, which will give the London-listed company complete ownership of the project, will see President pay $0.5m in cash, with $0.2m on completion and three monthly instalments of $0.1m each afterward.

The group said Pirity will receive a 3% net profit interest on revenue from the project once commercial production begins, while it will receive $2.7m in back-costs, should President agree a farm-out deal for the project.

"This acquisition will allow President the freedom, flexibility and scope to exclusively progress Pirity, and represents a mutually beneficial way forward for all parties," said group chairman Peter Levine.

President shares were down 1.22% to 9.31p at 1514 BST on Tuesday.