LONDON (Alliance News) - President Energy PLC on Friday said it swung to a loss in 2015 after 2014 had benefited from non-operating gains, while revenue fell on lower oil prices.
In a separate statement, the company also said the current level of production at its Puesto Guardian concession is almost double the average level it posted during 2015, as it said planning for its three development well programme was well advanced.
The oil and gas company, which is focused on Paraguay and Argentina, said it made a USD18.7 million pretax loss in 2015, having posted a USD14.3 million pretax profit in 2014 when benefiting from non-operating gains of GBP29.4 million. These gains were reduced to USD150,000 in 2015.
Revenue, meanwhile, fell to USD10.1 million from USD12.6 million, despite daily production increasing by 15% to 490 barrels of oil equivalent per day from 426 boepd. President Energy said the revenue fall reflected lower average oil prices in Louisiana, which fell to USD43 per barrel of oil from USD85 per boe.
"2015 was a challenging year during which, despite macro and micro headwinds, the foundations for the good progress being made today were laid," Chairman Peter Levine said in a statement.
"The emphasis in 2016 will be to increase production, cash generation and margins. The focus is therefore on the new drilling programme in Argentina in the second half of the year. As we have rationalised central overheads we have been investing in new key management competence in Argentina and we continue to make progress in this regard," he added.
Elsewhere, President said the current normalised production from the Puesto Guardian concession in Argentina is running at a daily rate of 500 barrels of oil per day, with a new workover programme underway on a further two producing wells, which it said would maintain and boost production levels.
As it currently stands, the level of production if almost double the average level of production President Energy saw in 2015, it said.
A development well programme is now projected to commence before the end of July, subject to all appropriate contracts being in place, the company added, and said this programme is currently planned to be completed and the three wells brought on stream in the second half of 2016.
The results will then be analysed with a view to considering a further drilling programme in 2017 on a step-by-step basis. The wells will be side tracks from existing shut-in wells with horizontal producing sections, President Energy said, and will comprise of one well each from the Dos Puntitos, Pozo Escondido and Puesto Guardian fields.
Planning is advanced, and discussions with contractors are ongoing with long lead items in the process of being ordered, President Energy said.
President Energy added that its existing lender IYA Global Ltd, which is part of PLLG Investments Ltd, has indicated its agreement in principle to provide the entire financial support for the programme by way of unsecured senior debt on final terms anticipated to be agreed in "early course".
PLLG Investments is solely owned by President Energy Executive Chairman and Chief Executive Peter Levine.
Shares in President Energy were trading down 1.7% at 7.25 pence on Friday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews and Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
