TIDMPPC
RNS Number : 8983R
President Energy PLC
01 November 2019
1 November 2019
PRESIDENT ENERGY PLC
("President" or the "Company")
Group Update
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina announces the commencement of
deliveries of its own gas through the Company's pipeline,
commencement of building a new 16 kilometre section of pipeline
with increased capacity, a recovery in its Louisiana production and
an update on oil prices in Argentina
Highlights
-- Commencement of pipeline gas sales
-- Building now starting of the new 16 kilometre pipeline giving
increased capacity
-- Louisiana production stages material recovery
-- Oil prices in Argentina payable to producers to increase by
5% with effect from today
Pipeline gas deliveries
President is pleased to announce that the Company is now ready
to flow gas to market through its own 60 kilometre pipeline from
the Company's Estancia Vieja and Las Bases fields ("LB and
EV").
The necessary work to achieve this significant milestone, taking
some nine months, has entailed major surface work including
installing both compressor and dehydration units together with
supporting infrastructure and reconstruction works at the Las Bases
gas plant.
From Monday, 4 November, 30,000 m(3) /day (1.06 MMscft/day or
175 boepd) of President's own gas will be piped by this route to
market from the LB and EV fields, with the volume currently
restricted by a bottleneck in a 16 kilometre stretch of pipeline
between Estancia Vieja and Las Bases due to it being a 3" flexible
temporary plastic pipe.
Next week work will commence to build the new 6" steel 16
kilometre pipeline to replace this 3" temporary plastic section.
This work is due to be completed in January. When finished, the
bottleneck will then be removed, gas deliveries will be ramped up
and the full potential of Estancia Vieja's gas unlocked as more
wells will be opened up on a stage by stage basis.
In the event that the previously announced conditional agreement
under which President is to take assignment of the Angostura block
is completed, President's pipeline gas sales transported via Las
Bases, would increase to 100,000 m(3) /day (approximately 3.53
MMscft/day or 600 boepd). Subject to provincial consent, it is
estimated that the closing date for such conditional agreement will
be later this month.
Louisiana
In the announcement of the Interim Accounts on 30 September
2019, reference was made to the slow recovery of the Triche well
after both the flood forced shut-in and the necessary and lengthy
workover thereafter.
That announcement stated that net production from Louisiana was
a somewhat lowly 75 boepd. This net figure has now more than
tripled to approximately 275 boepd as the Triche well has staged a
recovery with currently a gross 220 bopd and 1.2 MMscft/day of gas
being sold.
President has already commented on projected average production
figures for the full years 2019 and 2020 at the time of release of
the half year figures on 30 September, albeit before the entering
into the Angostura conditional agreement. The projections for 2020,
will be revisited in the New Year.
Argentina oil prices
It was announced last night that oil prices payable to producers
were to increase by 5% with effect from today. Industry observers
comment that this is sign that the restriction placed on oil prices
by the recent Government decree will continue to be lifted in
stages with full return to normality on the horizon. This increase
and return to norms clearly will have forward looking beneficial
impact on President and other producers and is indicative of the
importance of the well being of the oil industry to the
country.
Peter Levine, Chairman, commented
"The significance of the start of our own gas flowing through
the Estancia Vieja and Las Bases pipeline should not be understated
as should not the great efforts made by our Argentina team to
enable this to take place.
"It is an important milestone for any company to both own and
operate both it's own gas fields and pipeline delivery network to
market giving it a material strategic advantage.
"This is only a start however, with the next stage being the
challenge of building of the new 16 kilometre section of pipeline
in the space of only three months so that the full potential of the
Estancia Vieja can start to be recognised.
"I express my continued gratitude to the Province of Rio Negro,
our partner EDHIPSA and our own hard working employees in this
regard.
"Finally, it is also pleasing to see the production recovery in
Louisiana due to the hard work of our management there and the
consequential material increase in free cash flow from those
assets."
Glossary
Boepd: barrels of oil equivalent (oil and gas) per day
Bopd: barrels of oil per day
M(3) : cubic metres of gas
MMscft: million standard cubic feet of gas
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, Rio Negro
Province as well as 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 in Argentina
capable of delivering positive cash flows and shareholder returns.
With a strong institutional base of support, including 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 rare access to
the Argentinian 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
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END
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