President Energy PLC Expiry of Decree 566 - oil prices return to normal (3953T)
14 Noviembre 2019 - 1:01AM
UK Regulatory
TIDMPPC
RNS Number : 3953T
President Energy PLC
14 November 2019
14 November 2019
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Expiry of Decree 566 - oil prices return to normal
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, confirms that Decree 566, limiting
realisable prices for oil producers in Argentina has now expired
and from today prices have returned to normal.
As referred to in the Company's RNS issued on 28 August 2019,
the Government of Argentina issued a time limited Decree number 566
restricting the price of oil obtainable by producers by way of both
artificially fixing the Brent reference price and the dollar/peso
conversion rate governing payments by offtakers.
This Decree has now expired without at this stage being
supplemented or replaced. Accordingly on that basis from today
prices receivable by President from its offtakers have normalized
and are calculated on the same basis as before the Decree
implementation.
This means on such basis an immediate increase of between
US$9-10 per barrel in the realisation prices receivable by the
Company, representing an increase of approximately 20% from the
prices prior to today. On current values this means a current
realisation price of approximately US$53 per barrel for President's
core Rio Negro production.
Peter Levine, Chairman, commented:
"A return to normal oil pricing is welcome and would start to
have positive impact.
"Whilst the incoming government in Argentina, have for
understandable reasons yet to provide their vision / action plan
for the oil industry, President is cautiously optimistic as to the
future oil prices, particularly taking into account the very
negative effect Decree 566 had on the industry as a whole and the
prevalent generally accepted view by all sides that the health of
the oil industry is important to the Argentine economy as a whole
as it seeks to stabilise and improve."
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 currently has independently
assessed 1P reserves in excess of 15 MMboe and 2P reserves of more
than 27 MMboe.
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
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.
END
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