TIDMPPC
RNS Number : 5521M
President Energy PLC
09 January 2019
9 January 2019
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
President beats year-end 2018 net Group production target of
3,000 boepd
Group production increases over 50% year on year*
Third new well at Puesto Flores field successfully tested and
placed on production
Expected significant increase in 1P Proven reserves at the
Company's Rio Negro assets in upcoming audit
Investor Conference call to be held today at 10.30am
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
Group net production as well as its Concessions in the Rio Negro
Province, Argentina (President 90% and operator - Edhipsa 10%).
Group production
President is pleased to announce that it has beaten its 3,000
boepd target for net Group production exit year end 2018.
The Company is producing at a net Group level of approximately
3,300 boepd. This represents an increase of over 50% year on year*
and is being achieved without the benefit of any contribution from
the Las Bases Concession and with only a limited contribution from
the Puesto Prado and Estancia Vieja fields, all in Rio Negro
Province, Argentina. Commercial gas sales from the Las Bases and
Estancia Vieja Concessions are expected to commence by the end of
Q1 2019.
Production in the Puesto Guardian field in Salta Province
remains stable as does production from President's interests in
Louisiana, USA.
Well PF0 1005
This well has now been successfully tested and placed on
production with initial levels of approximately 250 bopd, being in
excess of expectations. Both the Punta Rosada and the Lotena
formations are producing on a co-mingled basis.
Management expect that the next Reserves Audit, due to be
published in March 2019, will show a significant increase in 1P
Proven reserves at the Company's Rio Negro Concessions due to the
successful drilling and workover campaigns delivered in 2018.
This latest result means the three well drilling programme has
met with 100% success. All wells are now producing and were
delivered on time and budget. Management are now monitoring overall
field performance in line with good reservoir management practice
with the objective of maximising monthly average production and
minimising downtimes.
Projected operational activity in Q1 2019
Operational work in the first quarter of 2019 will include, but
will not be limited to:
1. Preparation and planning of the next drilling campaign in
Argentina due to commence in Q2 ramping up into H2 as well as long
lead planning for 2019 exploration in Paraguay;
2. Workover campaigns in Rio Negro to bring on new production
from currently shut-in wells in the Puesto Prado and Estancia Vieja
fields, further enhancing economies of scale;
3. Commencement of added value commercial gas production and
pipeline sales from existing shut-in wells at the Las Bases and
Estancia Vieja fields as President seeks to have a greater revenue
contribution from gas production;
4. Electrification of the Rio Negro fields using President's own
gas from Estancia Vieja making substantial operational savings and
avoiding costly power outages from the grid;
5. Installation of a dual fuel power system in the Dos Puntitas
field, Puesto Guardian Concession in Salta Province, Argentina
using President's own generated gas reducing reliance on
diesel;
6. Preparations and planning for a four well drilling programme
to commence in early Q2 2019 at Jefferson Island, Louisiana;
and
7. Continued focus on costs and margins benefiting from
increasing efficiencies through sensible investment and greater
economies of scale generated by significant production growth.
Peter Levine, Chairman and Group CEO commented:
"Our objectives for 2018 were successfully delivered, and are
history now. The strategy for 2019 is to take everything we
achieved and build on it to deliver another year of dynamic growth
and profitability both organically and by acquisition.
"The expected significant increase in Proven reserves from our
Rio Negro assets underlines the material improvement in shareholder
value achieved last year. Whilst President's 2P Proven and Probable
reserves and extensive resources are important to demonstrate
future potential, the essential core value of our business is
reflected by proven hydrocarbon reserves particularly with greater
emphasis from the higher value added Rio Negro fields.
"President continues to maintain a 360 degree focus on every
aspect of the business from new production, reserves and reservoir
management to the crucial aspects of cash management and control of
G&A costs and expenses.
"We look forward to delivering and escalating shareholder value
in 2019."
Conference call
The Company will be hosting a conference call, focussing on
today's Operational Update, for Investors at 10.30 am (UK Time)
today. The dial in details are shown below and participants should
ask for the "President Energy Investor Call".
United Kingdom Toll-Free:
Dial in number: 08003589473
Conference code: 16678015#
United Kingdom Toll:
Dial in number: +44 3333000804
Conference code: 16678015#
Victor Linari, Master in Geology and Member of the Society of
Exploration Geophysicists, who meets the criteria for qualified
persons under the AIM guidance note for mining and gas companies,
has reviewed and approved the technical information contained in
this announcement.
Glossary
Boepd means barrels of oil and gas (oil equivalent) per day
* Start of new year 2018 compared to same time in 2019
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
Panmure Gordon (Joint Broker)
Charles Lesser, Dominic Morley +44 (0) 207 886 2500
Tavistock (Financial PR)
Nick Elwes, Simon Hudson +44 (0) 207 920 3150
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 as at 31 December 2017 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,
Estancia Vieja, Puesto Prado and Las Bases Concessions, Rio Negro
Province as well as in the Neuquén Basin of Argentina and in the
Puesto Guardian Concession, in the Noroeste Basin in NW 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.
The Group is also 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 Group, an in-country management team as well
as a Board whose interests are aligned to those of its
shareholders, 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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January 09, 2019 02:00 ET (07:00 GMT)
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