TIDMPPC
RNS Number : 0293L
President Energy PLC
20 December 2018
20 December 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Update on New Concessions in Rio Negro Province, Argentina
Signing Ceremony of New Concessions
First oil flows from Puesto Prado
First gas flows from Estancia Vieja via pipeline to Puesto
Prado
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 the
New Puesto Prado and Las Bases Concessions in Rio Negro Province,
Argentina (President 90% and operator - EDHIPSA 10%).
Highlights
-- The Puesto Prado and Las Bases Concessions (together "the New
Concessions") formally signed over to President in a ceremony
attended by the Governor of Rio Negro, the Secretary of Energy of
the Province, and our partners, the Provincial oil company
EDHIPSA
-- First oil now being produced from the reactivation of the first two wells in Puesto Prado
-- Estancia Vieja gas has been successfully flowed to Puesto
Prado and will be powering that field by end January
New Concession signing ceremony
At a ceremony which took place in Rio Negro Province, Argentina,
attended by the Governor of the Province of Rio Negro, Alberto
Weretilneck, and the Secretary of Energy of the Province, Sebastian
Caldiero, the New Concessions were formally signed over to
President and its partner EDHIPSA, the Provincial energy
company.
The attendees included representatives from all the key
provincial authorities, landowners, union representatives,
suppliers, contractors and members of the public.
Puesto Prado Oil Production
In line with President's plan to bring the New Concessions in to
production in a controlled manner, the first two Puesto Prado oil
wells have been reactivated and are producing in line with
expectations. Stable flow rates will be announced in the new year
when it is anticipated that a further three to four wells will be
reactivated and brought into production.
The oil is currently being shipped for treatment and sale by
President's contracted road transport to the Puesto Flores battery
plant, 30km away. Over the course of 2019, after necessary
infrastructure works, Puesto Prado's own battery will be
reactivated which will then allow the oil to be sold directly to
nearby refineries.
Gas Pipeline
After testing of the 15 km of newly acquired pipeline between
Estancia Vieja and Puesto Prado, gas has flowed from Estancia Vieja
and to the Puesto Prado field. This is a significant step as,
whilst no third-party gas sales are taking place at present, it
represents the first pipeline flowing gas production from Estancia
Vieja under President's operatorship and the first stage of the
ongoing commissioning of the pipeline acquired with the New
Concessions stretching from Estancia Vieja to the tie-in with the
regional pipeline via Puesto Prado and Las Bases. The flow of gas
is currently suspended awaiting the necessary volume metering
equipment for inter Concession pipeline measurement. This is
expected to be installed during January 2019 whereupon Estancia
Vieja gas will power the Puesto Prado field 24/7.
President is currently proceeding with the testing and
commissioning of the next section of pipeline between Puesto Prado
and Las Bases which, once completed and necessary compression
equipment is installed in Las Bases, will enable Estancia Vieja gas
to be off-taken for commercial sale combined with gas scheduled to
come from a one or two well reactivation programme in Las Bases
planned to commence in the New Year.
Peter Levine, Chairman and Group CEO commented:
"Whilst work in earnest in Puesto Prado and Las Bases will
commence during the course of 2019 when we have a greater
understanding of sub-surface potential, we are not losing time to
generate revenue from both those areas and the gas in our Estancia
Vieja field.
"The pipeline and these new Concessions will enable us to pivot
towards gas production, providing a greater diversity and balance
to our hydrocarbon production whilst still driving increasing oil
deliveries.
"Importantly, the extent of our enlarged Concessions in Rio
Negro Province gives us a platform for growth and valuable critical
mass in the important Neuquen Basin."
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 0500
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,
Estancia Vieja, Puesto Prado and Las Bases Concessions, 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
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 rns@lseg.com or visit www.rns.com.
END
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