LONDON (Alliance News) - President Energy PLC on Friday said reserves in the Neuquen basin increased in 2018 but proven and probable reserves in Argentina as a whole were down.
The oil and gas company said proven reserves in the basin were up by 82% over the previous year to 8.1 million barrels of oil equivalent from 4.5 million barrels. Proven and probable reserves in Neuquen were up 41% to 11.4 million barrels of oil equivalent from 8.0 million barrels.
The Neuquen basin contains President Energy's Puesto Flores and Estancia Vieja concessions, in which is holds a 90% working interest and is operator.
However, overall net proven and probable reserves in Argentina dropped to 24.9 million barrels of oil equivalent from 26.5 million barrels. This was the result of its Salta Province reserves having been adjusted downwards after President Energy reduced its capital expenditure activity and focused on its higher value Rio Negro fields.
Nonetheless, President Energy's net proven reserves in Argentina as a whole were up 6% year-on-year to 15.4 million barrels of oil equivalent from 14.5 million barrels. The company has a number of Argentinian interests outside of the Neuquen basin, including the Puesto Guardian concession.
"The increases in key producing reserves and value in the Neuquen basin in Argentina and its higher contribution to entire group reserves reflect our successful and continued focus on that area. The report and our continued cash generation is a clear vindication of our philosophy of value over volume underpinned by the success of President's acquisitions policy in the last 18 months and our concentration on margins," said President Energy Chair & Chief Executive Peter Levine.
"With the benefit of the latest acquisitions made in December, including the strategic gas pipeline and infrastructure, we are working diligently towards significantly growing our gas production this year as well as oil, thereby providing a more balanced energy portfolio," Levine added.
Shares in President Energy were down 3.0% at 8.83 pence on Friday.
