TIDMPPC
RNS Number : 6747H
President Energy PLC
07 December 2020
7 December 2020
PRESIDENT ENERGY PLC
("President" or the "Company")
Operation and production update
Production hits 4,000 boepd
Investor conference call scheduled
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, announces an
operations and production update in relation to its activities
across the Group.
Key points
-- Compressor at Las Bases field, Rio Negro, now commissioned
-- Newly drilled well LB-1001 at the Las Bases field opened up
and producing, new EVN-x1 at the Estancia Vieja field well to
follow
-- Production in Salta, Argentina stable and South Louisiana, USA steady
-- Total current instantaneous Group net production estimated at approximately 4,000 boepd
-- Current net gas production in Argentina approximately 2,000 boepd
-- The Company is currently finalising plans for next year's capital expenditure
-- Investor conference call scheduled for 11:00 (GMT) on Tuesday 8(th) December 2020
Operations
The new compressor infrastructure at the Las Bases field has
been commissioned and is in operation. The compressor enables more
gas to be delivered from the Company's Estancia Vieja gas wells.
Accordingly, this is the first time four wells in this field have
been able to produce together and are now flowing gas to market
through President's pipeline infrastructure. The Company has
identified potential to drill further wells in that field.
At the same time, the newly drilled LB-1001 (gas) well has been
placed on production, with aggregate production from this well is
currently ahead of expectation. The recently tested well LB-1, as
yet not on stream, will be connected and placed into production
before year end. Likewise the new well EVN-x1 is currently off-line
having a pump fitted. President will monitor the results from that
well in due course with a view to drilling shallow appraisal and
production gas wells in the Las Bases field in 2021. Current cost
projections per well, including artificial stimulation are around
US$1 million.
The production from the Puesto Guardian concession in Salta is
stable. As previously announced, President is progressing with
planning and a feasibility study with a view to drilling 2 or 3
vertical development oil wells in 2021 in the Dos Puntitas field,
part of the Puesto Guardian concession, and is in the process of
applying for the relevant environmental and location permissions.
The last vertical well drilled in Dos Puntitas initially produced
250 boepd.
In South Louisiana, USA, production is steady with only small
declines over the last 12 months. The Simmons 2 well having been
off-line for repair for over two months has come back on line with
total net production from the wells now approximately 280
boepd.
In the light of the overall progress made, operational plans for
the next 13 months are now being prepared and will be announced in
January 2021 after Board review.
Production
Aggregate group net production has now reached 4,000 boepd with
virtually an even split between oil and gas.
This is a current daily production rate and demonstrates the
level that President, on present evidence, considers the wells can
deliver. As such this rate varies day by day as wells go on and
off-line. The average rate over time is a more valuable
representation of the production and these figure will be published
at appropriate times.
Nevertheless the general increase in production, with no
material increase in opex, will have a beneficial effect on the
costs per barrel and the bottom line of the Company taking into
account the base opex cost in the fields has already been largely
covered by core production.
President is now considering the most expedient long term
production levels for optimum field and reservoir management. Such
consideration will, inter alia, take into account the fluctuation
between Argentina's domestic summer and winter gas pricing and the
ability to constrain or increase each well's production depending
on all prevailing circumstances.
Prices
In relation to prices, the Company notes the recent positive
upward movement of both the oil price and Argentina gas prices, the
latter particularly welcome since it coincides with the Company
materially increasing its gas output.
The oil price receivable by President for December production is
estimated at more than the US$42 per barrel mark for the first time
since March with the current spot gas prices achieved in the first
week of December being US$2.10 per MMBtu which prices fluctuate
week by week. These prices permit the consideration of the drilling
expenditure in 2021 referred to above.
Peter Levine, Chairman, commented
"Steady progress is being achieved but we have the capacity
within ourselves to build on this and achieve more. In this regard
the announcement today and those made recently demonstrate such
capability and underline the potential in our assets which we
continue to work hard to realise.
"We look forward to increased activity next year and expect to
make an announcement within the next two months regarding future
plans and timing".
Conference Call
The Company will be hosting a conference call, focussing on
today's announcement, for Investors at 11:00 (GMT) on Tuesday 8(th)
December 2020.
Conference call dial-in details:
-- United Kingdom Toll-Free: 08003589473 PIN: 56808439#
-- United Kingdom Toll: +44 3333000804 PIN: 56808439#
Glossary:
Boepd means barrels of oil equivalent (oil and gas) per day
LB means a well in Las Bases field, Rio Negro Province,
Argentina
M(3) /d means cubic metres of production of gas or oil as the
case may be
MMBtu means Million british thermal units of gas
MMcf/d means Million standard cubic feet per day
P50 means mid-case
Contact:
President Energy PLC
Rob Shepherd, Group FD +44 (0) 207 016 7950
Nikita Levine, Investor Relations Info@presidentpc.com
finnCap (Nominated Advisor)
Christopher Raggett, Charlie Beeson +44 (0) 207 220 0500
Shore Capital (Corporate Broker)
Jerry Keen, Antonio Bossi +44 (0) 207 408 4090
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 contract, all of which are situated in the
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 also actively pursuing value accretive acquisitions
of high-quality production and development assets capable of
delivering positive cash flows and shareholder returns. With a
strong strategic and institutional base of support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, President Energy gives UK investors access to an
energy 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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUNUKRRNUURRA
(END) Dow Jones Newswires
December 07, 2020 02:00 ET (07:00 GMT)
Molecular Energies (LSE:MEN)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Molecular Energies (LSE:MEN)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
