Member Info for DRichi

The company itself has gone from producing 500BOPD a few years back, and was targeting 4900 BOPD by 2019 year-end., with the goal of increasing production by 150% in 2020 and 150% again in 2021. That should have been a success story with a corresponding rise in SP.

At a company level however, there has been too much share dilution, and at a macro level, oil price and risks in Argentina have negatively impacted the SP.

I'm gutted about the drop in SP. I'm moving house next month, and would have liked to sell a lot of my shares and get myself a much smaller mortgage. Stubbornness, not wanted to take a significant loss, whatever, it looks like I'll be a long term holder here for quite a bit yet. Markets dislike change, hopefully Argentina can stabilise, and PPC can up their Oil & Gas production, and ramp up operations in Louisiana, and branch out in Paraguay.

That is the logical thing to do. Judging by reports and previous promises made to the Paraguayan President, Paraguay is ready to be drilled. If Argentina is on-hold, then PPC should turn attention to Paraguay.

I remember 2014, and thinking that if Paraguay went well then PPC would go from 30p to £3. If we could go back to 30p now I would be happy, but hey ho, a big strike and maybe £3 is on..... (Optimism courtesy of a long lunch down the pub) ;-)Cheers!

Kid1- If this is a FACT that the stock "will trade at a wider discount to fair value" - that means it's worth more than the current price so clearly a Buy!

I do think that's a fair assessment, PPC is trading at less than Fair Value, so there is the opportunity to get in cheap and make a lot of money. But, the unknowns- it might go a bit lower first , and/or it might take a long time to recover to Fair Value.

I'm heavily invested so I would love to see the SP way north of here, however, I'm not optimistic of that happening any time soon. Maybe a boost with 1/2 year results? Maybe the Gas going online? Or new news ....

News this morning from Boris Johnson! - these days I struggle to understand British politics, so probably not even worth trying to fathom Argentine politics either. Que sera, sera...

Still, not all sells today- a few Buys coming in now as well, and the SP has bounced a bit off its' 4.75 low. Maybe a 5.5 Close?

Maybe this is a cunning plan by Macri, and by announcing this 90 day freeze he will take support away from Fernandez, and it will help Macri win the October election, and if he wins, then Argentina can go back to BAU and recovery....

Clutching at straws?

D'oh! Well, that's rubbish.

Surely if Argentina exploratory drills go are put on hold, the logical thing would be to start drilling in Paraguay now.......

Ohmetoe- Absolutely agree with you. And actually that's just the Change Portfolio that we are talking about. I would like decent Monthly MI updates on all the projects underway, but also, there should be some decent Quarterly reporting of Production figures. Total # of barrels of oil from each well. Average figure per Quarter, maximum BOPD. Netbacks per region, total Monthly and Quarterly Costs, Income, Profit.

I think PPC will do a very good job, and ramp up Production this year and next and grow. But, as an old manager told me years ago when I was starting out; what you do is only half the job, the perception of it is the other half. PPC need to up their Comms.

Re-reading the Feb Presentation detailing the Book of Work for 2019. https://www.presidentenergyplc.com/wp-content/uploads/2019/03/Presentation-Final-25022019-website-version.pdf

Puesto Flores- Drilling Development, Drilling Exploration, Workovers
Estancia Vieja- Drilling Exploration, Workovers
Puesto Prado- Drilling Development, Workovers, Reactivation
Las Bases- Drilling Development, Drilling Exploration, Workovers, Reactivation
Paraguay- Drilling Exploration (Now pushed back to early 2020)
Louisiana, USA, - Drilling Development.

I would really like a monthly update on all of these. Some kind of status scorecard perhaps. One page on each. Key achievements in the last month, key activities planned for next month. Some basic project management MI. Still, there's plenty of irons in the fire, hopefully get some (positive) updates soon....

AParky- Unfortunately based on past experience that rule of thumb does hold true for PPC.

Still, it's Wednesday. Every day this week has been Blue and a tick-up with the SP. Another 365 days of tick-ups and we'll all be rich! ;-) Let's hope this continues....

There is so much planned for H2, that there really should be a steady stream of RNS's. How about one RNS a week giving a positive update? Workovers, Flowrates, Exploratory drilling, Gas coming online, Louisiana, Argentina, and maybe even a bit of Paraguay. Lot's of RNSs please. Lots of good news. The SP needs it!!

The RNS then goes on to say, "President, remains confident as to its future prospects and success as an energy business and is examining initiatives to deliver value for shareholders."

I wonder what these 'initiatives' are....

Ramping up Production, meeting the 4900 BOPD goal which increases Production 150% YoY would be a very good start. 'Initiatives' suggests to me that there might be something else as well. Maybe, hopefully....

Northern- In the 1/2 Year Mgmt Report RNS earlier this month, PL made the same point as you. "In the space of only some 20 months President has enjoyed a period of transformative progress including the successful integration of four valuable acquisitions, a strategic pan-regional pipeline, the bringing on of new production, generation of positive cash flow and attaining good margins. Despite this, President's share price, uncoupled from such progress, has dropped some 35% in value during that time."

That's PL having a dig at the SP and the Market and I can understand that.

The way I see it, is that it will take a string of good results, or a majorly good result to bring heavy buying here, but when that does happen the effects will be compounded because of the current low SP. I.e. SP is 6p now, production increases come in which should move the SP 2-3p, but because the fair value at the moment is say 12p rather than 6p the good production increases will see the SP +3p from 12p to 15p. Maybe I'm being wildly overoptimistic, but you gotta have hope....

Couple big buys of 500k and one of 650k yesterday.

Nice to see.....

In 18 months time maybe we will look back at <6p a share, and think that surely we should have known that the SP was going to rocket. All the building blocks are in place. Production is be ramped up in USA & Argentina, diversifying into Gas as well as Oil, and a big chance in Paraguay.

End of next year +£1 a share, and will be looking back feeling stupid for ever doubting it and not investing more.

Maybe.... looks as cheap as chips at the moment. This has to come good one day. Surely...........?

This week would be good to announce a successful workover in Louisiana, or the start of new drilling in Paraguay....

President emphasises that it is a dollar based business and that trading continues as normal. Accordingly, the Company does not envisage any material adverse impact on its business or prospects from the fall in the value of the peso nor does it see any actual or contingent threats to its assets as a result of any potential political changes.

PPS get paid in USD. A fall in Peso reduces operational overheads.

Fernandez will be a bad leader for Argentina sure. But a country can have dictators in charge that oppress people and are generally bad for society but still have oil companies that make a good profit. Eg. Saudi Arabia, Iran, any of the Middle East countries to be fair. All terrible leaders, generally bad people, but they get a lot of £££ for oil.

Fernandez getting elected in October rather than Macri could be argued to be bad for the Argentinian economy (what kind of crazy country would elect a populist leader), so that's unlikely to be good for the country.

For President Energy though, the share price shouldn't be affected much by the macro situation. Rather what is much more important is how many barrels of oil per day it is drilling, and how much gas it's selling too. If PPC does well with it's workovers and gas too the SP should rise significantly regardless of who may or may not be President of Argentina.

PPC sell the oil & gas in USD. They have confirmed this previously when concerns of FX fluctuations were raised.

If the Argentine peso drops significantly then theoretically the impact will be that PPC Costs- E.g. salaries, and maintenance everyday day running costs paid in Pesos will drop, so actually a weak peso will assist PPC's bottom line.

(In much the same way that a weak £ after the Brexit referendum actually helped a lot of FTSE100's companies balance sheets as a lot of assets/income are denominated in USD, so the drop in GBP vs USD made the companies worth more in GBP).

Today (so far) there's been 3 trades totally 4k. That's not a significant amount in either volume or GBP.

There's a lot of news coming in the 2nd half of this year that will boost the SP. Workovers, selling of the Gas etc.

Re: Buying- maybe wait till the SP doesn't move for a few days, then you'll be Buying based on the chance that the next RNS will have a positive effect on the SP.