StockMarketWire.com - President Energy is pursuing claims against two service providers for what it assesses are loss and damages of $10m in total, in relation to what it alleges as their actions/omissions in relation to the DP 1002 S/T well.

It said mediation and inter-party discussions were continuing with lawyers representing all sides. The internationally known service providers were currently denying liability, said President Energy.

The companies were Weatherford International de Argentina S.A., a subsidiary of Weatherford International, and Helmerich & Payne (Argentina) Drilling Co, a branch of Helmerich & Payne Inc.

"If not capable of amicable settlement, President will vigorously protect its position and pursue its claims through the relevant Courts/Arbitration," the company said.

Chairman Peter Levine said the result of the Well DP1002 S/T was disappointing.

"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," said Levine in a statement.

He remained hopeful that President Energy could in good faith arrive at a satisfactory settlement of all respective claims with the two relevant service companies with whom it was in talks.

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

"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."






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