TIDMPPC
RNS Number : 9301A
President Energy PLC
27 January 2020
27 January 2020
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
New Argentina independently certified reserves report
2P and 3P Reserves increase to 26 million and 43 million barrels
respectively
2P Reserves in Neuquen Basin increase by over 20%
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily South America, announces its new independently
certified hydrocarbon reserves report on its assets in Argentina
("the Report") calculated as at 31 December 2019.
The Report only addresses the Company's producing assets in
Argentina and does not address its other assets in the USA and
Paraguay.
Report Highlights:
-- President's net 1P reserves stable at just over 15 MMboe
representing a net increase from the previous year as production
has been replaced:
-- The Company's net Argentine 2P reserves increased to 25.9
MMboe (2018: 25.0 MMboe)
-- The higher value Neuquen Basin 2P Reserves increased in 2019
by over 20% to 13.4 MMboe (2018: 11.4 MMboe)
-- The Report therefore shows the increasing influence of the
higher value and productive Neuquen Reserves compared to that in
Salta Province, with the former now comprising 53% of the total 2P
Reserves compared to 2017 where the respective percentage was
30%.
-- President's net Argentina 3P reserves increased by 40% to 43
MMboe (2018: 30.5 MMboe) with in addition 2C Resources reported at
14.6 MMboe.
-- The Neuquen Basin 1P and 2P reserves now comprise 30% gas, up
from 16% in 2018 with gas production set to increase materially
this year to a level reflective of the reserves ratio (2018: 3% of
total production was gas).
-- Only a limited amount of reserves have as yet been attributed
to the Angostura block acquired in late 2019 which by the end of
February is projected to be producing over 100,000m(3) of gas per
day (3.5 MMscft/d equivalent to 600 boepd) after a new more
powerful compressor is commissioned.
-- The EV/2P* ratio (enterprise value to 2P reserves) based on
4.05p being the mid market price of the Company's shares as at
close of business on 24 January 2020 is calculated as approximately
US$3.4 per 2P barrel
Commentary
President has now received the independent Argentine Regulated
Reserves Report calculated as at 31 December 2019 over its
producing areas in Argentina being those in the Rio Negro Province,
Neuquén Basin and the Salta Province, North West Basin. This report
was prepared under, and in compliance with, Argentine Regulatory
Standard requirements and is being filed with the relevant
regulatory authorities. President rotates its Reserves Auditors
each year, each of whom are registered and regulated with the
Argentine Regulatory authorities.
The Report focuses only on President's producing assets in
Argentina and does not take account of (1) the Company's producing
hydrocarbon reserves and prospective resources in Louisiana nor (2)
the prospective resources in President's Argentina and Paraguay
exploration areas.
A table showing the independently reported reserves in Argentina
by Province is set out below.
NET RESERVES TABLE
2019 (MMboe) 2018 (MMboe)
1P 2P 3P 1P 2P 3P
Puesto Guardian,
Salta 7.5 12.1 19.7 7.3 13.6 16.7
Rio Negro, Neuquen
Basin 7.6 13.8 23.3 8.1 11.4 13.8
Total Argentina 15.1 25.9 43.0 15.4 25.0 30.5
Note - for the purposes of this table and the reserve figures,
fraction numbers are rounded up if 0.05 or more or down if less
than 0.05.
Peter Levine, Chairman and Group CEO commented:
"In a year when no drilling took place, albeit numerous
workovers, the reserves replacement and increases in key producing
reserves in the Neuquén Basin in Argentina is commendable and sends
a positive message underlining the future potential in our current
assets. At the same time, our Puesto Guardian Concession remains an
important and valuable asset which will also receive our
substantive attention this year.
"Thus, with a resumption of development and exploration drilling
in both Rio Negro and Salta, we look forward to another year of
reserves growth.
"Furthermore, whilst abiding by the prudent and appropriate
mantra of "step by step", we do not rule out a more substantial
leap or two in 2020 if and when the right opportunities arise."
* Note - the EV takes into account the recent repayment of US$4m
to Trafigura and the expected IYA debt conversion of US$1.95
expected to be approved at the General Meeting within the next 10
days. The 2P for this calculation assumes an estimated amount of
540 Mboe for reserves in Louisiana in addition to those in
Argentina.
Glossary of terms
Mboe- thousands of barrels of oil equivalent
MMboe millions of barrels of oil equivalent
1P - Proven hydrocarbon reserves
2P - Proven plus Probable hydrocarbon reserves
3P - Proven plus probable plus possible hydrocarbon reserves
2C - Best estimate of contingent hydrocarbon resources
Dr Martin Gee, PhD in Geophysics (Oxon), BSc (First Class Hons)
in Earth Sciences (Cardiff) 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.
Contact:
President Energy PLC
Peter Levine, Chairman
Rob Shepherd, Group FD +44 (0) 207 016 7950
finnCap (Nominated Advisor)
Christopher Raggett, Scott Mathieson +44 (0) 207 220 0500
Whitman Howard (Broker)
Hugh Rich, Grant Barker +44 (0) 207 659 1234
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 has operated interests in the Puesto Flores,
Estancia Vieja, Puesto Prado and Las Bases Concessions and
Angostura exploration area, Rio Negro Province 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 always considering value accretive acquisitions of
high-quality production and development assets capable of
delivering positive cash flows and shareholder returns. With a
strong institutional base of support, including Schroders,
Trafigura and 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
access to the Argentinian re-generation 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
MSCSEIFLMESSEEF
(END) Dow Jones Newswires
January 27, 2020 02:00 ET (07:00 GMT)
Molecular Energies (LSE:MEN)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Molecular Energies (LSE:MEN)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024