Phoenix Global Resources PLC Operations Update (4740J)
14 Abril 2020 - 1:00AM
UK Regulatory
TIDMPGR
RNS Number : 4740J
Phoenix Global Resources PLC
14 April 2020
14 April 2020
Phoenix Global Resources plc
("Phoenix" or the "Company" or "Group" )
Operations Update
Petrolera El Trebol S.A., Grecoil y Cía S.A., Kilwer S.A. and
Ketsal S.A., subsidiaries of Phoenix Global Resources plc (AIM:
PGR; BCBA: PGR), the independent Argentine focused upstream oil and
gas exploration and production company, have received notice from
YPF Sociedad Anónima ("YPF") that YPF is temporarily suspending the
purchase of oil until further notice.
The notice from YPF states that the pandemic outbreak has led to
a significant reduction in the demand for oil, which has forced YPF
to reduce and/or stop production at its refineries and discontinue
the reception of crude oil at the point of delivery. Whilst the
Company is currently reviewing its position, it is faced with no
option but to shut-down production of crude oil from its operated
licences Puesto Rojas, Atamisqui and Tupungato.
On licences operated by third parties, production at Rio Cullen
and Las Violetas has been significantly reduced and the Company is
currently seeking to clarify with YPF the position on the
Chachahuen licence.
Whilst the negative impact on the business is expected to be
temporary, the Company continues to explore possible mitigating
actions it can take but no definitive conclusions have yet been
reached.
Furthermore, following an announcement made on 11 June 2019, a
subsidiary company of the Group ("PETSA") was notified that the
Province of Mendoza had issued a decree terminating the extension
to the exploitation licence for the Chañares Herrados block that
had previously been granted to Chañares Energía S.A. The
notification was given as a result of non-compliance by Chañares
Energía S.A. in relation to commitments under the concession. PETSA
held an interest in some existing wells in the block through a
joint venture agreement in place with Chañares Energía S.A., which
established that the latter would be the only license holder of the
block. The Company has recently become aware that the Province of
Mendoza rejected Chañares Energía S.A.'s administrative appeal for
revocation. PETSA has therefore given Chañares Energía S.A. notice
of termination of the joint venture agreement with effect from 9
April 2020. This block produced on average 499 boepd in 2018 and
had 2P reserves of 2.3 million at 31 December 2018, both net to the
Company's interest.
For further information, please contact:
Phoenix Global Resources plc Kevin Dennehy, CFO T: +54 11 5258 7500
Shore Capital Antonio Bossi T: +44 20 7408 4090
Joint broker and nominated David Coaten
adviser
Panmure Gordon Daniel Norman T: +44 20 7886 2500
Joint broker Atholl Tweedie
Camarco Billy Clegg T: +44 20 3757 4980
Financial PR Owen Roberts
James Crothers
About Phoenix
Phoenix Global Resources is an independent oil and gas
exploration and production company focused on Argentina and listed
on both the London Stock Exchange (AIM: PGR) and the Buenos Aires
Stock Exchange (BCBA: PGR). The Company has over 1.8 million
licenced working interest acres in Argentina (of which over 0.7
million are operated), 57.1 million boe of working interest 2P
reserves and average working interest production of 10,249 boepd in
2018. Phoenix has signi cant exposure to the unconventional
opportunity in Argentina through its approximately 700,000 working
interest acres with Vaca Muerta and other unconventional
potential.
The Company's website is www.phoenixglobalresources.com
- ENDS -
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END
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April 14, 2020 02:00 ET (06:00 GMT)
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