TIDMPPC
RNS Number : 6784B
President Energy PLC
12 January 2018
12 January 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Successful completion of workovers of third and fourth wells at
Puesto Flores Field
Expanded fully funded 2018 work programme of workovers and
reactivations with drilling set for later in the year
Strong trading position substantially ahead of expectations with
President's share of production in the month of January from
Argentina expected to generate US$4.5 million cash sales
proceeds
Highlights
-- The third and fourth workover wells at the recently acquired Puesto Flores Field in Neuquén Basin, Argentina
have been successfully completed ahead of time and under budget with an expected payback for the entire four well
workover campaign of less than three months
-- New untested intervals perforated and on stream in each well with preliminary results substantially ahead of
expectations
-- Gross Field production expected to reach approximately 1,700 bopd in February when the latest workovers stabilise,
up significantly since the start of the workover campaign
-- Cash flow and margins substantially ahead of pre-acquisition expectations
-- President's share of production for the month of January from Argentina is expected to generate cash sales
proceeds of US$4.5 million
-- Expanded 2018 activity plan for President's Neuquén Basin assets:
o Initial testing of the shut-in Estancia Vieja Field to
commence during February
o Further workovers at Puesto Flores scheduled for Q2 2018
o New drilling campaign planned to commence in H2 2018 to
initially comprise
development/appraisal wells
-- 2018 capex fully funded from existing resources and cash flow
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina is pleased to announce successful
results from its third and fourth workover wells at the Puesto
Flores Field, Rio Negro Province, Argentina (President 90% and
Operator: Ediphsa 10%). The previously shut-in wells PFO-23 and
PFO-10 were completed ahead of time and under budget at a total
cost of US$950k versus a budget of US$1.25 million. The payback for
the entire four well workover campaign is estimated at less than
three months.
In accordance with the work plan for PFO-23 and PFO-10, the
wells were cleaned out and the untested up-hole intervals in each
well totalling some 21.5 metres net were perforated. The results
were substantially ahead of expectations with testing at various
flow rates ongoing. The two wells are now on stream and producing
from the new intervals and once stabilised in February are expected
to increase gross field production to approximately 1,700 bopd.
As a result of the success achieved, further workovers are
planned at the Puesto Flores field in Q2 2018 with the commencement
of development/appraisal drilling scheduled to commence in H2 of
this year.
President has also now set in motion the testing of wells in the
currently shut-in but previously producing adjacent field of
Estancia Vieja within the same Concession with preliminary results
due at the end of February. A total of up to four oil wells will be
pilot tested with a more ambitious future programme including
workovers and reactivations due to commence in Q2 2018. The
Estancia Vieja field was previously a prolific producer of both oil
and gas, at one stage producing over 18,000 boepd between 1992 and
1993, but was producing only 63 boepd prior to it being shut-in in
2011 by the previous operator.
All the costs of the said projected work at Puesto Flores and
Estancia Vieja are fully funded and will be met out of the Group's
existing resources and cash flow.
The Company is in a strong trading position. In relation to oil
prices, President received US$60.80 per barrel for its December oil
from the Puesto Flores Concession with oil produced in January
currently expected to realise approximately US$64 per barrel. This
increase of nearly 20% since President acquired the asset in
September 2017 when the price was US$55, together with the increase
in net production to President since the start of the workovers, is
currently having a materially beneficial impact on cash flow and
margins, which are substantially ahead of pre-acquisition
expectations for this time.
Peter Levine, Chairman and CEO, commented:
"President is delivering positive results from its work at the
Puesto Flores field which is a reflection of the Company's growing
in-country operational expertise.
"Concentrating our capex as previously announced on our Neuquén
Basin assets, we enter 2018 with a multi-faceted, fully funded work
programme.
"With all our Concessions in Argentina and Louisiana making
profitable contributions we continue to focus on growth in
shareholder value both organically and through the right
acquisitions whilst maintaining our core emphasis on positive cash
and margins."
Contact:
President Energy PLC
Peter Levine, Chairman, Chief
Executive
Bruce Martin, Chief Financial
Officer +44 (0) 207 016 7950
finnCap (Nominated Advisor
& Joint Broker)
Christopher Raggett, Scott
Mathieson, Emily Morris +44 (0) 207 220 0573
BMO Capital Markets (Joint
Broker)
Jeremy Low, Neil Haycock, +44 (0) 207 236
Tom Rider 1010
Camarco Financial PR
Billy Clegg, Owen Roberts,
Mercedes Valenzuela-Goldman +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 16 MMboe and 2P reserves of more
than 25 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 second 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 announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
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