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RNS Number : 7203O

President Energy PLC

12 October 2021

12 October 2021

PRESIDENT ENERGY PLC

("President" or the "Company")

Mobilisation for Puesto Guardian commenced

Louisiana production

Paraguay farm-out

Atome spin off

Share premium account

President Energy (AIM: PPC), the energy company with a diverse portfolio of energy assets, announces an update on various of its activities.

Puesto Guardian Concession, Salta Province, Argentina

The Company anticipates that drilling of the first well of three firm, two contingent well program will commence towards the end of October 2021 with two wells projected to be drilled by the end of the year and the third to be completed in January 2022.

Mobilisation is in progress with loads travelling from Neuquén to Puesto Guardian, Salta Province, a distance of 1,950km. The same distance will have to be travelled by other services required for drilling which reflects the significant overland logistical exercise including dealing with the various provincial authorities and permissions needed en route.

The results of the re-processing of seismic over the Pozo Escondido field at Puesto Guardian will be available in good time to allow the final investment decision to be made in relation to two contingent wells before the end of year; if positive, and subject to the success of prior drilled wells, these would be drilled from February 2022 onwards.

Triche well, Louisiana

President has now been able to swab this well back on stream without workover rig intervention albeit on a temporary and reduced basis pending a full workover of the Triche well. Whilst the initial production level on opening up the well of only some 30 barrels of oil per day from Triche is substantially lower than the level which is projected once the workover takes place, it nevertheless is helpful in providing some income pending availability of an adequately sized barge to carry the already reserved workover rig which is still projected in the near future .

A further update on these wells will be given in November .

Paraguay Farm Out

Good progress has been made as to the satisfaction of the last remaining condition to the farm-out agreement. Although later than originally envisaged, it is now expected that this condition will be satisfied by the end of October with closing of the farm-out in November. Projected commencement of drilling the high impact exploration well is slated for H1 2022.

Atome

Good progress is being made on the ground in both the countries referred to in past announcements where Atome's first projects are located. The Nomad, brokers and reporting accountants have all been appointed and are working with the executive team towards a flotation of Atome on the AIM market of the London Stock Exchange before the end of this year under the ticker "ATOM".

Cancellation of share premium account and potential distribution

Further to the passing of the Special Resolution at the recent Annual General Meeting of the Company, it is anticipated that the High Court will on 16 November 2021 consider the proposed capital reduction by way of the cancellation of the Company's share premium account. If approved, it is anticipated that the capital reduction will be effective shortly after this date.

As previously announced, in the event that the flotation of Atome proceeds, and subject to confirmatory tax advice, the Directors intend, if the timing is right, to distribute by way of a special dividend (or other distribution) a significant part of President's holding in Atome to President's shareholders immediately prior to Atome joining the market. Major shareholders in President have informally indicated their support for this move and willingness to hold shares in Atome. A record date for entitlement to any such distribution will be communicated nearer the time when there is greater certainty.

The Directors co ntinue to believe that such a distribution will be of significant added value to President's shareholders and, given the number of shareholders in President, it will as a consequence result in Atome having a wide investor base comprising institutions and private investors from its start as an AIM listed company. This should provide liquidity, a beneficial feature for the after-market, as well as a platform for any placing that maybe carried out by Atome at the time of admission to AIM.

Peter Levine, Chairman, commented

"This announcement reflects the breadth and depth of President's activities without even taking into account our core operationally profitable production assets in the Neuquén Basin, Argentina throwing off free cash from operations. It is all too easy to gloss over the amount of work by our teams involved in each of these separate workstreams which are taking place simultaneously in geographically diverse locations.

"As to Atome, our green hydrogen and ammonia business, we look forward as soon as commercially prudent to providing more specific information on all activities which are both extensive and progressing.

"We at President believe that hydrogen will inevitably be one of the cheapest sources of renewable energy for many applications which electric batteries are constrained in addressing, such as heavy goods transport, heavy industries and marine/shipping. In fact, given the technical challenges of these hard to abate sectors, we believe that hitting net zero targets without hydrogen will be very challenging as well as enormously costly.

"Currently some 95% of all hydrogen in the world is made through fossil fuels, principally natural gas. Given the expected price increases impacting the competitiveness of this so-called grey or blue hydrogen, we consider that green hydrogen will become increasingly commercially attractive and hence in higher demand globally both on price and for its zero emissions profile. This reinforces the rationale for President's focus on Atome.

"Additionally, we expect that Atome's focus of producing hydrogen from readily available existing green power sources should make Atome very competitive in this exciting fast-growing new sector.

"Whilst all of our workstreams have their challenges and as such for not want of trying, targets and times can slip, shareholders can be assured that the whole of President is fully focused and motivated to bring these activities home for the Group."

Contact:

 
  President Energy PLC                       +44 (0) 207 016 7950 
   Nikita Levine, Investor Relations          info@presidentpc.com 
  finnCap (Nominated Advisor and broker) 
   Christopher Raggett, Tim Harper 
 
   Blytheweigh (Public Relations to          +44 (0) 207 220 0500 
   Atome) 
   Tim Blythe, Alice McLaren, Madeleine 
   Gordon-Foxwell                             + 44 (0) 755 499 7357 
 
 

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

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END

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October 12, 2021 02:00 ET (06:00 GMT)

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