TIDMPPC
RNS Number : 8905N
President Energy PLC
14 May 2018
14 May 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
ARGENTINA UPDATE
Seven well workover programme now commenced at Puesto Flores
Long term gas test of three wells in Estancia Vieja to commence
in June
Three well drilling programme at Puesto Flores now to start
September
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, provides an update in relation to
its Neuquén Basin assets in Rio Negro Province, Argentina.
Key points
-- A seven-well workover programme at Puesto Flores has already
commenced comprising six producing wells and one water injector
-- Long term test of gas wells in Estancia Vieja field combined
with sales of gas produced to commence next month
-- Accelerated three well drilling programme at Puesto Flores to
commence in September with rig and main contractors identified
Workover programme at Puesto Flores field
Following the success of our initial workover programme in early
2018 which materially increased production, the recently announced
follow-on programme has now commenced and will cover seven wells,
six of which are designated production wells and the other a water
injector well. The work will take between 2-3 months and further
announcements as to progress will be made in due course albeit not
on a well by well basis due to the number of wells involved.
Estancia Vieja field
Preparation has commenced for the long-term gas testing of three
formerly shut-in gas wells which will be initiated in June. The gas
produced from these 45 day tests will be sold through state of the
art mobile LNG units based at the Estancia Vieja Battery. If the
tests prove successful, the wells will be seamlessly placed on
production with gas sold through these same units. The test results
will be analysed to assess the optimum production levels from these
previously drilled wells, the size of the gas reservoir as a whole
at Estancia Vieja and its field development. President does not
rule out other routes to market/use of the gas subject to
volume.
Currently President only sells a modest amount of gas from its
Puesto Flores field receiving approximately US$30k per month with
the balance of gas produced used for internal field purposes, so
the expected gas sales proceeds from the testing should
substantially increase that amount.
Drilling programme at Puesto Flores
This has now been accelerated further to start in September. The
programme is now projected to comprise two development wells and
one step out appraisal well. The inclusion of the step out
appraisal well is due in no small part to the identification that
not all production in this field can be explained as coming from
four-way closures; there may be combined traps (stratigraphic and
structural simultaneously) extending beyond the previously defined
field boundaries within the Concession.
Argentina macro news
President notes the media attention given to matters concerning
the peso exchange rate and inflation within Argentina. Whilst
clearly and understandably these are matters of importance to the
country, there are no current or envisaged material adverse changes
to President's financial position or prospects. President agrees,
sells and gets paid for its oil and gas monthly on the basis of a
dollar value for which payment is receivable in pesos at the
prevailing peso/dollar exchange rate calculated at the date the
monthly monies are actually paid; for example, for oil production
in the month of April from Puesto Flores, President received
US$66.5/bbl converted to pesos at the time of payment for the oil.
For the avoidance of doubt, President's Argentinian bank loan has
its reference for both capital and interest in dollars.
Such media attention has, to a certain degree, hidden last
week's significant positive development in the Argentine Congress.
This is particularly relevant to the ongoing preparations for the
listing of the Company's shares on the Argentine Stock Market as,
according to the Financial Times, approving a new capital markets
law, should boost the chances of Argentina being promoted to
emerging market status by the MSCI benchmark equity index in
June.
General Update and 2017 Accounts
The Company expects to announce its year end results in early
June at which time the Company will also provide a further update
on all of President's assets in both Argentina and Paraguay as well
as a trading update for Q1 2018.
Peter Levine, Chairman of President, commented:
"Action has commenced at our Neuquén Basin assets which will see
us working continuously between now and the end of the year with
the objective of achieving significant organic growth by the end of
this year.
Our confidence and commitment to the country of Argentina and
its prospects is underlined by the steadfast determination to
increase and accelerate investment as well as the continuing plans
to list our shares in Argentina and look for sympathetic, value
generating acquisitions in the country."
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, 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 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 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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