Member Info for Brasso3

BOPD? No Idea!
Cash position? No idea!

- What are current production levels in Argentina?
- What is the production forecast for 2022?
- Will there be a further two wells at DP as originally planned?
- Why has the CoS for the Paraguay well reduced from 30% to 17%?
- When will the company improve PR and start promoting PPC to a wider audience?
- Is there a plan to reduce PPCs high interest debt?

Why are PPC happy to give details on US production but not Argentina production in todays RNS?

Smells of a desperate attempt to create some positive spin on the Paraguay delay. They spent years trying to get a farm in partner in 2014 - 2016 for MDT and nobody was interested.

Comeonvog

Can you give me a previous example where PPC has delivered on one of its Projects with regards to a schedule?

Comeonvog

It is not about drilling. The wet weather restricts moving heavy equipment around like drilling rigs. Why did PPC want to wait until after the rainy season 2022 to drill as per their RNS?

Steven,

Good point.

8th June RNS:-

'Costs of the well are estimated at between US$10-15 million with an estimated chance of success of 30%'

20th April RNS:-

'A further independent sub-surface study commissioned by President in March 2022 placed a 17% chance of success on the Tapir prospect.'

DP-2001 is in Argentina. I am talking about Paraguay!

25th Nov 2021 RNS:-

'The location of the exploration well within the complex has been identified and planning has begun for the drilling of the well in H1 2022 after the end of the rainy season.'

Paraguay will not happen in 2022 now. The rainy season runs from November to March so that will be the next excuse for not drilling in Q4 2022.

These 3 wells were supposed to be online by January 2022 so they are around 3 months over at present.

26th Jan 2022 RNS:-

'President expresses its sincere appreciation of the support of the Salta Province and its authorities in its endeavours both in relation to the current US$11 million three well drilling programme,'

As all the wells seems to have taken longer to bring on line I did estimate that the cost will now be closer to $12m.

The communication was more frequent in 2021 as they needed to make sure the Atome IPO was succesful.

I find it quite shocking that 7 months after the 3 well drilling programme in Argentina was announced, that we are still awaiting flow rates from the first two wells.

I suspect this 3 well drilling programme is creeping up to the $12m area now ($4m per well). Originally it was supposed to be $3.5m per well. A few months ago it was mentioned that it was over budget at $11m.

An RNS stating that they have lost the password to the Twitter account probably!

Nobody knows the answer to that except PPC. You would expect the spudding of a well to be announced by RNS.

The 3rd well started in the week commencing 1st March. They just have not bothered to report it to the market.

1st March RNS:-

As such testing will continue for a period of time to optimise production and assess reservoir capabilities, the drilling rig has moved to and is in the process of setting up at well PG 13-1 at the Puesto Guardian field within the Salta Concession, some 45 km away from the Dos Puntitas field. This well is planned to be a side track from an existing well location. Work is currently projected to commence this week with timing for the drilling rig work approximately 21 days.

Eccles

I agree with you and are also a long term suffering investor here. Argentina will never be the company maker here and an objective to maintain production in the 2500 - 3000 BOEPD range is more realistic. They need to diversify with production from different countries to offset the assets in Argentina.

Paraguay is the way out for many and possibly a route to a profitable investment for the brave.

Eccles

The Argentine oil price fixing has always been in place (>10 years) so I do not think that is responsible for the dilution/ placings. PPC over committing to a country like Argentina was the problem in my opinion. Then continuously failing to meeting production targets (eg. 2019 - 3000 BOEPD, 2020 - 7500 BOEPD, 2021 - 3600 BOEPD)

I do not think there has been many better situations to average down than now at 1.7p. With around 50% of PPCs oil production now exposed to market prices this is a game changer for cashflow. I think the market still needs to see that the 3 well drilling programme is successful, so once that is confirmed at 750 BOPD then everything is set up for strong 2022. If they can get drilling in Paraguay then that will be the icing on the cake.

19,000 x $90 = $1.7m
5,000 x $100 = $0.5m

With the rest of the Argentina production it looks like March could generate around $3m - $3.5m in revenue. Probably PPCs largest ever month in its history?