Member Info for DRichi

As well as the 6 well workovers, there are 2 new wells being drilled. The 1st is in Las Bases, and the 2nd is in Estancia Vieja. The succesful well workover announced today is in EV as well. This bodes well for the new drilling well. As it's in the same field, I would assume that it makes success there more likely. The new drilling well in EV is targeting, adding oil at 252 BOPD, and gas at 60,000 m3/d. And "in a success case the whole of the Estancia Vieja North structure is opened up" with a potential 6 further wells there.

Nothing is guaranteed of course, but the prosects look better today than they did yesterday.

It's a 6 well workover programme. The 1st two wells were targeted to add 100,000 m3/d between them. Initial results on the 1st well are 137,000 m3/d (1050BOEPD). The figure that goes into Production will be lower than that probably. But it's a great start to the programme.

Reading the 26/8 RNS again, it sounds like the 1st 2 wells have the least upside to the SP as they are Gas. Wells, 3,4,5 are almost maintenance: replacing a defective pump, a pump beam, and reapiring a leaking packer. These should all be 'easy' wins and increase BOPD production. All of these should have a + impact on the SP. The 6th well sounds the most interesting, with water flooding at Puesto Flores. That's probably the biggest risk/reward play.

Steven, I haven't checked PPC's mathematics, but here's a wiki page explaining the factors and how the calculation works. https://wiki.aapg.org/Risk:_expected_value_and_chance_of_success

Hope this helps!

Thanks Nice toMichu. For the record I do agree with all the points you & AParky made below.

Fingers crossed it is mostly upside from here.....

NicetoMichu, AParky- I suppose if one was to try see the company's performance through rose tinted glasses, you could look at debt beng paid off, diversification into differet geographys, and oil & gas, significant cost cutting on the price of production of a barrel of oil, and a big increase in overall production. All this in times of COVID, and the price of oil hiting an all time low this year.

But for every little bit of good news there seems to be another share issues and more shares created, so the SP is in the doldrums.

Delusional is sometimes the only way to look at my investment here over the years and not cry!! Que sera, I guess, but hopefully this is the bottom for the SP and it can rise a bit in the next 6-18 months.

What's the definition of madness again? ;-)

5/8's - PL 1st mentioned Paraguay a month or so ago in the Annual Report, with a comment along the lines of "there were talks, but then went on hold due to COVID so nothing to report" - in which case it does rather beg the question, why report it?

The Paraguay update in the RNS this week makes it sound like something might happen by end of Year, but I don't think it helps anybody by saying this now. Much better to wait and announce a deal if/when one is done. I don't seem to remember any mention of, or any leaked info before the Rio Negro deal was done, so this does seem odd.

@Calum07- Neither that PPC might sign a deal with a 3rd Party for a farm-out in Paraguay, or that PPC might diversify into Renewable energy in some fashion, are things that you can price in to a fair-value valuation of the Company. We can however hope that PI's buy shares based on future potential which would have a positive impact on the SP.

Workover program of 6 wells- 2 Should increase Gas production by 100,000 m3/day, and the other 4 should increase BOPD
Paraguay farm out - sounds likley a contract will be signed by YE, and drilling next year
Alternative energy- potential there

Potentially then, that's a significant amount of upside this year and next. Hopefully the SP can break through 2p on this, but I expect any big rises that may (hopefully) occur will only be on actual results, and not planned actions.

20p a share, with 2 billion shares in issue would value PPC at aprox £400 Million.

I'm all in favour of this happening, but we would need a lot of things to go extremely right for this to happen. Increased production in Louisiana, very successful workovers in Argentina, exploratory drills hitting gushers in Argentina, Paraguay farm-out drilling success, plus an acquisition or two???

So 20p is probably a little way off yet. But hey ho, wouldn't it be nice? And anyway, it's just nice to have a decent Blue day today. Fingers crossed the SP keeps on going up....

Buy at 1.93, and quite a few trades of decent size.

Be patient, be patient (said the Dr to the folks in the waiting room). This share rarely (never) rises for no reason, so hopefully there will be some good news out soon

tweeted by President two days ago:

The installation of a second compressor has commenced in Las Bases. This is in preparation for LB-1001 coming online, as well as the additional workovers in Estancia Vieja later this month. #Drilling #Workovers #PPC #Argentina2

With pictures- https://twitter.com/PresidentPlc/status/129576460482036940

in response to the question, "Are you looking at other countries to expand operations?" the response was; "Yes, we are, but it’s inappropriate at this moment in time to say where or when. I also think that it’s fair to say that the emphasis going forward will be on the word in our title Energy. Energy includes many things and we are opening our eyes to the word energy and every aspect of energy. Beyond that I can’t say"

Published under FAQs- https://www.presidentenergyplc.com/investors/faq/

Re: Funding for any potential acquisition. Looking back at the Rio Negro purchase in 2017, PPC 'only' paid Chevron $400,000 to take over their assets, but they also had to pay the Rio Negro Province $15M and then a further $7M for extending the license.

EBITA for 2019 was $12M. If a caparable deal could be made, and PPC could structure the license payment so that it doesn't have to be all paid up-front, then it is possible that PPC could make an acquisition without the need to raise capital.

AParky-will be a great feeling to make a profit here! (even if only on small part of the investment). :-)

Great to read that RNS. Good to have an update, and really good that it's good news.

EV, 2 workovers = + 3.5 mmscfd Gas, and 50 BOPD
Las Bases, + 5.6 mmscfd Gas, and 188 BOPD
EV, targeting a new structure which if successful significantly increases reserves and will lead to possibly another 6 wells
Rio Negro, + 12 mmscfd Gas, and 300 BOPD

All work to be carried out with President's own funds, and no further cash required. :-)

This work is all planned over 2nd half of 2020. Fingers crossed it goes well, and these workovers and drills are all sucesses, and then hopefully we can have a steady stream of good news from here to Christams, with each sucess pushing up the SP.

(estimated % chance of success for each part is included in the RNS, but we can hope they all come good)

Below is the link for the Investor presentation in June:
https://www.presidentenergyplc.com/wp-content/uploads/2020/06/200623_PPC-Presentation-v3-FINAL-RED.pdf

I don't imagine much has changed. It's worth a read.

Good that the price ticked up at the end there, meaning it stays flat for the day. Must have been the two 250k Buys at 15:49 & 15:50. Funny how sometimes the price can tick up or down on small volumes, and on other days much larger volumes don't move it. Guess it's a cumulative effort.

Back to the usual peace & quiet here. Not the greatest ramping effort to be honest. Let's give them a "must do better next time" grade.

For the record, I do think the SP here is very unfair, and there's a lot of money to be made for anyone getting in at these prices.

I'm allowed to be grumpy when I'm down on my investment though! Oh well, at least the football is back on to cheer me up, who are Bournemouth playing next, they're due 3 points....

@ Ohmetoe- bitter LTH's? Speaking as a LTH, you can add: grumpy, fed-up, hugely down on original investment, annoyed, upset etc etc

Still, on the flipside from this SP, as D-Ream would say, things can only get better....

Yours Sincerely, Blindly optimistic / delusional (delete as appropriate) LTH.