RE: News ahoy15 Feb 2019 07:11
Commentary
President has now received from its independent Argentine regulated reserves auditor the Report over its producing areas in Argentina including those in the Rio Negro Province, Neuquén Basin and the Salta Province, North West Basin.
The Report focuses only on producing assets in Argentina and does not take account of (1) the significant prospective resources of President's exploration areas in Argentina (2) the Company's producing hydrocarbon reserves and prospective resources in Louisiana nor (3) the extensive prospective resources in President's Paraguay exploration areas.
A table showing the independently certified reserves in Argentina by Province as well as management estimates of the Louisiana reserves is set out below.
NET RESERVES TABLE
(MMboe)
1P
2P
3P
Puesto Guardian, Salta
7.3
13.6
16.7
Rio Negro, Neuquen Basin
8.1
11.4
13.8
Total Argentina
15.4
25
30.5
Louisiana
0.6
0.6
0.6
Group Net reserves
16
25.6
31.1
Note- for the purposes of this table and the reserve figures, fraction numbers are rounded up if 0.05 or more or down if less than 0.05.
Peter Levine, Chairman and Group CEO commented:
"The increases in key producing reserves and value in the Neuquén 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.
"Accordingly, we remain focused on materially increasing profitable hydrocarbon production combined with reserves growth.
"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."
Glossary of terms
MMboe millions of barrels of oil equivalent
1P - Proven hydrocarbon reserves
2P - Proven plus Probable hydrocarbon reserves
3P - Proven plus probable plus possible hydrocarbon reserves
NPV10 - Net present value discounted at 10 per cent through the life of each concession calculated at a flat US$68 per barrel
Reserves use a value of flat US$68 per barrel during the life of each Concession
Victor Linari, Master in Geology and Member of the Society of Exploration Geophysicists, who meets the criteria for qualified persons under the AIM guidance note for mining and gas companies, has reviewed and approved the technical information contained in this announcement.