TIDMPPC
RNS Number : 7226J
President Energy PLC
07 December 2018
7 December 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Update from Rio Negro Province, Argentina
Successful testing of 2nd new well
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 relating to its
Concessions in Rio Negro Province, Argentina (President 90% and
operator - EDHIPSA 10%) including the Puesto Flores/Estancia Vieja
Concession ("PF/EV").
Highlights
-- PFE 1001, the second new well in the drilling programme,
tested at 400 bopd from the primary target double initial
expectations
-- The secondary target, having also successfully flowed oil,
has been isolated and kept in reserve to produce at a future
date
-- The well will be on stream from the primary target interval by 10 December
-- Drilling of the third and final well in the 2018 series, PF0 1005, proceeding as planned
Well PFE 1001
This well has now been successfully completed and tested. Both
the secondary, Pre Cuyo, and primary, Punta Rosada, targets
successfully produced oil and as with the predecessor well, PFO
1001, the secondary target was isolated to be kept in reserve to
produce at a later date.
The Punta Rosada, having tested at the rate of approximately 400
bopd with nearly zero water and good downhole pressure, will be on
line by 10 December with a similar level of initial production
expected. This rate of flow is substantially ahead of our initial
expectations which was 200 bopd and would provide pay back on the
well within 12 months on the basis of current oil prices and
expected decline rates.
Well PFO 1005
The drilling of the PFO 1005 development well at the Puesto
Flores field, the last of the current three well sequence, is
proceeding as planned and is currently drilling at 2,000 metres
with a target depth of 2,700 metres. A further update on progress
will be made later this month.
President retains its pre-drill guidance of 200 bopd for the
target production of PFO 1005.
Payment of the last part of the deferred acquisition cost of
PF/EV
The final part of the deferred consideration payable to the Rio
Negro Province of US$1.8 million has now been paid, meaning the
full acquisition cost of PF/EV has been discharged.
The deferred consideration paid by President during 2018 was
US$7 million, all paid from the Company's own funds.
Peter Levine, Chairman and Group CEO commented:
"We are pleasantly surprised at the initial flow results from
PFE 1001, a well delivered on time and budget, and are now focused
on the third well in the series alongside initial work on our newly
acquired Rio Negro Concessions.
"President's stringent focus on G&A, opex, margins and cash
flow as a dollar based business in Argentina means that it is in a
strong position to benefit from increased production whilst
providing downside protection against any oil price volatility or
inflation."
Glossary
Bopd-barrels of oil per day
Ppm- Parts per million
C1-C5- Hydrocarbon gasses ranging from C1 lighter (methane gas)
to C5 heavier (pentane indicative of oil)
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 +44 (0) 207 220 0573
BMO Capital Markets (Joint Broker)
Jeremy Low, Tom Rider +44 (0) 207 236 1010
Panmure Gordon (Joint Broker)
Charles Lesser, Dominic Morley +44 (0) 207 886 2500
Camarco Financial PR
Billy Clegg, Jane Glover, 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,2P reserves of more than
27 MMboe, and production approaching 3000 boe/d.
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 remains 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 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 (including the IFC, part of
the World Bank) 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 news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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