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President Energy PLC (PPC)

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Friday 29 June, 2018

President Energy PLC

AGM GROUP UPDATE

RNS Number : 0631T
President Energy PLC
29 June 2018
 

29 June 2018

 

PRESIDENT ENERGY PLC

("President", "the Company" or "President Energy")

 

AGM GROUP UPDATE

 

 

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, will be providing the following update at the Annual General Meeting of the Company due to be held at 11.00 a.m. UK time today.

 

Key points:

 

Company Update

President is in a strong trading and financial position with excellent growth prospects. All producing fields are operating profitably, positive cash flow is increasing, margins continue to be robust and there is a busy time ahead this year with new wells and workovers. Combine that with encouraging interest being shown in our significant exploration assets and the ability to make the right acquisitions should they present themselves and the outlook for the rest of the year and 2019 is positive.

 

Puesto Flores, Argentina

·    Current gross production remains approximately 2,100 bopd with as yet three workovers of producing  wells having been completed.

·    Workover of the injector well has now been successfully completed which will reduce costs of water  disposal and the fourth workover of a production well is now in progress with three more lined up after it.

 

Estancia Vieja , Argentina

·      Testing of gas wells at Estancia Vieja is expected to commence tomorrow and will run over approximately two months.

·      A further announcement in relation to initial testing results will be made in about one month's time.

·    Given the lack of available LNG capacity to sufficiently handle the projected increased gas production from  this field, the gas will instead be used initially to power the Estancia Vieja field which will provide a saving of approximately US$30k per month with plans progressing to utilise the gas to power the whole of the Puesto Flores field at a bottom line saving in excess of US$120k per month at that field thereby making in total a positive difference to President's bottom line profit of US$2 million per year.

·     Once the testing is completed the optimum way of commercialising excess gas over and above that being used for internal purposes will be determined.

 

Puesto Guardian and Louisiana

·     Puesto Guardian and Louisiana fields continue to produce in line with previous announcements at some 500bopd and 325 boepd respectively.

 

Exploration assets

·   Farm out processes continue in relation to exploration assets in both Argentina and Paraguay.  Encouraging interest is being shown in these assets with NDA's having been signed and data rooms being entered.

 

 

Peter Levine, Chairman of President, commented:

 

"President is a profitable oil and gas operating company with room for significant organic growth and the determination and capability to materially expand with the right acquisitions and through exciting large-scale exploration prospects."

 

 

Glossary

bopd - barrels of oil per day

boepd - barrels of oil equivalent per day

 

Victor Linari, Master in Geology and Geophysics and Member of Society of Exploration Geophysicists, who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

 

 

Contact:

 

President Energy PLC

Peter Levine, Chairman, Chief Executive

Rob Shepherd, Group FD

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor & Joint Broker)

Christopher Raggett, Scott Mathieson, Andrew Burdis

 

 

+44 (0) 207 220 0573

BMO Capital Markets (Joint Broker)

Jeremy Low, Neil Haycock, Tom Rider

 

 

 +44 (0) 207 236 1010

 

Camarco Financial PR

Billy Clegg, Owen Roberts, Violet Wilson

 

+44 (0) 203 757 4980

 

Notes to Editors

 

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets. The Company currently has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 27 MMboe.

 

The Company has operated interests in the Puesto Flores and Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company is focused on growing production in the near term in Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

 

President Energy's third largest shareholder is the IFC, part of the World Bank Group and is actively pursuing value accretive acquisitions of high quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support and an in-country management team, President Energy gives UK investors rare access to the Argentinian growth story combined with world class standards of corporate governance, environmental and social responsibility.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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