TIDMPPC
RNS Number : 5116B
President Energy PLC
14 February 2022
14 February 2022
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
2021 Unaudited Key Trading Highlights
New Argentine Reserves Report as at 31 December 2021
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration energy assets currently
focused primarily in South America, announces unaudited 2021
trading highlights together with an updated Argentine reserves
report as at 31 December 2021.
2021 Unaudited Trading Highlights
-- Turnover of approximately US$34.2 million, without any
consistent contribution from the Louisiana assets
-- Average Group production of 2,473 boepd (2020: 2,714 boepd)
with no material contribution from Louisiana
-- Estimated adjusted EBITDA in Argentina of US$9.5 million
(calculated on the basis of Group financial reporting)
-- US$14.5 million of free cash generation from operations
(after workovers) and treasury income
-- Group results are expected to include a benefit of US$13
million to the profit and loss account arising from the spin out of
Atome Energy PLC and dividend distribution to shareholders of
President which represented a yield of approximately 20 per
cent
-- The Company retains a 27.9% holding in Atome Energy PLC which
at 31 December had a market value of US$9.8 million
Argentine Reserves as at 31 December 2021
-- President's 2P reserves in Argentina as at the year end have
been assessed at a robust 24.4 MMboe
-- Argentina reserves and contingent resources have been
independently certified according to Argentinian Law as at 31
December 2021, after taking into account production in the year
-- Group net 2P Reserves of over 24 MMboe limited to current
life remaining of concessions taking no account of any future
extension of such contracts
-- Significant contingent resources in producing areas awaiting
conversion to reserves after contract terms are prolonged
-- The reserves reported exclude the internally estimated
Paraguay exploration PMean of 536 MMbo unrisked oil-in-place that
are in addition to the figures reported today; drilling of a
complex estimated to contain 230 MMbo of that total will be
undertaken in 2022 in a joint venture with CPC, the state energy
company of Taiwan.
YE2021 Reserves YE2020 Reserves
(MMboe) (MMboe)
1P 2P 3P 1P 2P 3P
------ ----- ----- ------ ----- -----
Puesto Guardian,
Salta 6.2 11.7 19.4 5.7 12.7 20.8
------ ----- ----- ------ ----- -----
Rio Negro,
Neuquen Basin 7.3 12.7 15.3 7.6 10.9 13.2
------ ----- ----- ------ ----- -----
Total Argentina 13.5 24.4 34.7 13.3 23.6 34.0
------ ----- ----- ------ ----- -----
Peter Levine , Chairman, commented
"Whilst trading in 2021 was solid, despite the static production
taking into account the loss in all material respects of
Louisiana's contribution in the year, we still showed a healthy,
operationally profitable business
"On a strategic level, we produced material returns for our
shareholders through the spin out and IPO of Atome Energy and
successfully, notwithstanding the pandemic, farmed out our Paraguay
exploration prospect to the state energy company of Taiwan
"It is important to ensure that going forward we leave no stone
unturned to achieve optimum performance and delivery for our
capital expenditure
"With one new well in Salta on stream and still stabilising, the
second to be online at the end of this week and the third to be
drilled this month, Salta commercial oil production is already
increasing and is expected to continue as the other new wells come
on. The waterflood secondary recovery project in Rio Negro
scheduled to start within 6 months is very promising for both
stabilising natural decline and increasing the amount of
recoverable oil. Work is progressing to prepare for the high impact
exploration well in Paraguay to be drilled this year targeting,
based on internal estimates, 230 million barrels of unrisked oil in
place
"We therefore look forward to an improved performance this year
with regular newsflow keeping the market updated".
Glossary:
1P means proven reserves
2P means proven and probable reserves
3P means proven, probable and possible reserves
Adjusted EBITDA is Earnings before interest, tax, depreciation,
amortisation and impairment
Law means sections 35 and 58bis of the Argentine Hydrocarbons
Law 17,319 (as amended by Law 27,007)
MMboe means million barrels of oil and oil equivalent (gas)
Oil in place means the total content of a potential oil
reservoir
Pmean means the expected average value of all possible
outcomes
Contact:
President Energy PLC +44 (0) 207 016 7950
Rob Shepherd, Group FD
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
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
Río 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.
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.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Peter Levine,
Chairman.
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