Member Info for Brasso3

Royston will be a monster (0.5 TCF) and require and dedicated gas processing plant. We have its little baby (Coho) to look forward to in the meantime which once on production will help fast track the development program at Ortoire. I think there will end up being 3 wells in total at Coho to drain the reservoir.

Ecclescake

Are you suggesting that the weld procedures may not be compliant to BS 12732 and ISO 3834? :)

It is Argentina so I doubt they understand the need for weld qualification and control.

The 4000 - 5000 BOEPD average target is not very challenging but better that than to keep disappointing the market. I am sure production is currently around 3000 BOEPD and the EV gas should lift that to around 4000 BOEPD. Hopefully we then get 5 - 8 wells in Argentina and 4 wells at Jefferson island over the remainder of the year.

It was 50% year on year exit production.
- 2019 - 4900 BOEPD
- 2020 - 7500 BOEPD.

The new target for 2020 is 4000 - 5000 BOEPD average

They need to start upping the communication this year. Drilling is supposed to start again in Argentina this quarter and not news yet. Jefferson island was supposed to start at several points during H2 2019 and we hear nothing. The Paraguay data room has been open for 5 years! It feels like the only thing going on is the welding of a pipeline which PPC has sub-contracted.

At 3200 BOEPD and using TXPs current net backs of $27/ barrel would mean pre-tax profits of $86k a day in H2 2020. Annualised that would be $31m before SPT (not applicable to gas production).

I think they are going for Chinook next as its an oil prospect and will be fast to monetize. The Royston well is targeting gas and the two nearest valve stations are 5km - 10km away. I think they are making the right choice. In fact I would probably rather see a second well at Coho before going onto Royston. Lots of tasty options and PB will make the right decision for share holders.

So it look like at the latest we will have Cascadura on production by mid April and Coho tied in by End of June. On a conservative basis, Coho should bring in 1200 - 1500 BOEPD (net) and Cascadura 300 - 500 BOPD (net) IMO. Current production is running at 1750 BOPD so we are 5 months away from potentially 3200 - 3700 BOEPD!

Worth spending 5 minutes listening to this interview from 16th December (1 month ago) again with PB.

https://www.youtube.com/watch?v=_tJtH3nUT6I&t=4s

Cascadura Highlights:-
- The net sand pay was 5 times thicker than the expected 200 feet (actual >1000 feet).
- He expects to have Cascadura producing into tanks in around 90 - 120 days.
- These are thick oil columns and 1 well will not be enough to drain the reservoir.
- Another 2 wells are already licensed and can be drilled from this location.
- The first testing with be the 170 feet at the bottom of the well.

The hook up will not be complete until Q2 so we can only expect a progress update on COHO-1 and maybe some offtake agreement with Shell. The tie in will cost $600k - $700k so is within TXPs reach. The next news is more likely early flow tests from Cascadura which they may report the two zones separately.

Hoping this can get past 4.5p this week. I feel it will be short lived if the BoD do not deliver some communication about the plans for 2020.

Nice to be back to 4p. I think fair value here assuming production levels of 3000 BOEPD is probably 6p - 8p. I would think 10p (£110m market cap.) is a reasonable target for end of 2020 providing they do not do another f**king equity raise. Tot reach 10p they would have to achieve the average consistent production of 4000 - 5000 BOEPD though.

Yes once again I agree. 2018 went a long way to moving this company forward and they had a clear plan and it was implemented taking production up to 3300 BOEPD. 2019 was the opposite with many problems and poor communication at times. They need to start 2020 with clear objectives and a plan. I do not consider making an estimate of 4000 - 5000 BOEPD average production for 2020 very ambitious considering that when the gas opens up end of February that will take us to 4000 BOEPD.

What has happened to Jefferson island?
What is going on with Paraguay farm out and drilling?
How many wells will be drilled in Argentina during 2020?

Aparky

My thoughts too. I really hope PPC are quick now to issue a few RNS in January. I would like to see an overview of January highlights (they normally issue an RNS for this) and also some kind of strategic update and work plan for 2020.

Paraguay should have been in 2018, then 2019 (by hook or by crook) and last word was H1 2020.

Don't hold your breath on Paraguay being drilling in 2020. PPC do not have $10m to drill there and Argentina is the priority.

Chrishutch

I do not believe that theory about why JP Morgan have sold. This is not the first time our market capitalization has been below £50m. One quick example would be March 2016 when the share price hit 5p and the shares in issue were 525m. The market cap. then was below £30m.

That is the end of our seller and the overhang IMO.

Next stop 4p.

https://www.presidentenergyplc.com/wp-content/uploads/2020/01/2020_Letter_To_Shareholders.pdf

Twitter Update:-

President Energy@PresidentPlc 4h
Pipeline Update ?? : 8km welded, 7km of pipeline buried #installation #President #RioNegro

So that is 2km additional pipe welded in 11 days (over the xmas period). It looks like they will need all of January to get it finished (welded + buried) so it could be delivered on time. My bet is end of first week of February with gas flowing mid to end of February.

Continuation of the last post and my final post on AEX!

I see for the last interims AEX generated $140k over the 6 months!

"Revenues from continuing operations amounted to US$0.14 million (30 June 2018: US$0.34 million)."

The other red flags for AEX are the 3.6 billion shares that are in issue. I clear sign that its a company that has diluted all long term holders out of existence. The final warning is to stay away from any company involved with SOLO (another Neil Ritson tragedy). Look what he did to the poor share holders of LGO 2 to 4 years back.