TIDMPPC
RNS Number : 6056G
President Energy PLC
05 March 2018
5 March 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
New independent certified Argentine Reserves
President's Neuquén Basin 2P net reserves increase by 66% to 8
MMboe
Argentine total 2P net reserves now 26.6 MMbboe
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, announces the results of the latest
Argentine yearly reserves certified as at 31 December 2017,
conducted by JR Consultores led by Juan Rosbaco, a leading
Argentine Reserves auditor.
Highlights
-- President's Puesto Flores / Estancia Vieja, Neuquén Basin net
1P Reserves increased by over 30% to 4.5MMboe from the equivalent
of net 3.2MMboe when the assets were acquired*
-- Net Argentine aggregate 1P reserves remain steady at
14.7MMboe of which the Neuquén Basin higher value reserves of
4.5MMboe now comprise over 30%, up from 20% previously
-- Neuquén Basin net 2P reserves increase by 66% from equivalent of 4.82MMboe to 8MMboe*
-- Net Argentine aggregate 2P reserves increase to 26.6MMboe of
which the Neuquén Basin reserves now comprise over 30% up from less
than 15% previously with Puesto Guardián contribution to the total
accordingly reducing, as referred in the table below
-- 2018 Capex programme capital expected to further increase
President's Neuquén Basin reserves
The certification with an effective date of 31 December 2017 was
made pursuant to regulatory requirements in Argentina which require
reserve reports to be filed with the relevant regulatory body by 31
March each year for the prior calendar year period. The regulations
also require companies to change auditors each year to promote
independence of audit.
The results of the auditor's report, net to President, after
taking into account the minority interest in the Puesto Flores/
Estancia Vieja Concession, are as set out in the above highlights
and the table below which for the sake of brevity will not be
repeated in extenso here.
Importantly, the Argentine certificated results reveal a
materially increased impact and influence on President's reserves
in the high net back and profitable Puesto Flores Concession in the
Neuquén Basin with 1P and 2P reserves there up 30% and 66%
respectively following the recent successful four well work-over
programme. Further upgrades in reserves at this Concession are
anticipated as we proceed with our already commenced, fully funded,
2018 capex programme.
To place the new reserves report in context, the significantly
increased reserves in that Concession with its profitable producing
barrels has a not insubstantial impact on the Company's asset
valuation and enhanced shareholder value.
For the avoidance of doubt the reserves figures referred to
above exclude the Company's operated producing and profitable
assets in Louisiana.
President's Argentine Net Reserves Table
1PMMboe 2PMMboe
-------- -------- --------
EV/PP 4.5 8
-------- -------- --------
PG 10.2 18.6
-------- ======== ========
TOTAL 14.7 26.6
-------- -------- --------
Peter Levine, Chairman and CEO, commented:
"The latest reserve figures underline the increasing value and
diversity in our Argentine assets and act as a clear signpost for
organic growth to come in 2018 and beyond".
"We have had a successful start to the year in Argentina and as
the year progresses we expect to see material progress not only in
earnings but also in reserves."
Note
*The reserves announced in September 2017 for the Neuquén assets
reflected a 100% interest and was prior to the grant of the
minority interest of 10% in that Concession to Edhipsa, the
Provincial Energy Company, pursuant to the Concession term
extension in December 2017.
Glossary
MMboe: million barrels of oil equivalent
1P: proven hydrocarbon reserves
2P: proven plus probable hydrocarbon reserves
EV/PG: Estancia Vieja and Puesto Flores Concession, Río Negro
Province (90% Interest)
PG: Puesto Guardián Concession, Salta Province (100% Interest
)
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 +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, +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 Group currently has 1P reserves in
excess of 15 MMboe and 2P reserves of 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 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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