Molecular Energies PLC on Friday said that progress has been made on its drilling operations in Paraguay, following the procurement of a rig.
Molecular Energies is an Argentina and US-focused oil and gas production company, with additional exploration assets in both Argentina and Paraguay.
The company said that, further to its announcement on January 9, the relevant drilling rig has now been procured for its Paraguay asset. As flagged previously, the rig will now undergo necessary repairs and checks due to being cold stacked for a prolonged period.
Molecular Energies added it has also now signed the drilling contract with President Energy Paraguay SA, a London-based exploration company focused on South America and Australia.
The firm is now in the process of signing agreements for ancillary drilling services, with the objective of starting drilling as soon as possible. It said that due to significant delays ‘completely outside’ of its control, the estimated time for drilling commencement is in May. Molecular emphasised that the delays were ‘directly due to the complex financial insolvency of the previous owners of the rig’, which necessitated dealing with multiple parties.
The drilling time projected to reach target depth is estimated to be 40 days from the time of commencement.
Molecular Energies shares were trading 4.1% lower at 105.00 pence each in London on Friday morning.
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