Member Info for DRichi

Brasso- forecasted EBITA for 2019 is £20M vs 16.7M for 2018. After years of running at a loss at least now PPC is making profits, even if we do all wish that it was making more.

4,900 BOPD target exit rate for 2019. Hopefully this can be achieved, but I would like to see the Roadmap to that, with all the assumed production rates of the wells, and some decent Status Updates. Maybe ask PPC to publish a monthly MI scorecard. Or just give us some more RNS at least...

@NMH- good work. A buy at sub 7p should make you a very tidy profit

AParky- They did say that they would not be providing updates on the workovers on a well-to-well basis, but would be good to have some updates! I think the SP would benefit from more good news!! (Obviously).

Hopefully this is the very bottom for the SP, and starting from now we can get a steady flow of RNS's with positive updates....

Additional pluses: Debt paid down significantly. Gas pipelines connected? Updates on the workovers? Exploratory drilling?

Would like to see some detailed RNS on these to help better understand the progress being made.

At least the company is now making a Profit. That's a big improvement on the loss making years up to 2017. Profits will increase year-on-year. It will come good and make a lot of people rich one day, I just hope it happens soon enough so that I'm still invested here.....

EBITDA for 2018 was $16.7m. Forecast for 2019 is $20m. That's 120% of 2018. 2018 exit price = 9.25 and that x 120% = a SP of 11.1. (Needs adj slightly for the small amount of additional shares) but still sub 7p prices looks to be a significant undervaluation.

Agreed. Bring on the good news. Be good to see the SP rise...

An update on fraccing operations at the Puesto Flores field in the Rio Negro Province onshore Argentina from PPC this morning. As previously announced the company have fracced the Precuyo formation well PFO-16 which was selected as it is tighter than the Punta Rosada and producing at a much lower rate of 50 b/d. It also has a lack of proximity to substantial water bearing zones.

The company report that the job has been successful and is flowing at the high end of initial expectations with a 95% oil cut and daily test production is 175 b/d more than three times the previous rate. The well which is still being cleaned up, will be monitored for a month which is more prolonged than usual in order to collect further reservoir data. But unless there is something which doesn’t work well I would expect the company to do this elsewhere in the portfolio, indeed they have already ‘commenced planning’ for such a campaign which, subject to kit availability, should be this year.

President is still trading at a significant discount to any metric I can think of, the delivery that this company has put in over the last year or more and what is expected over the next two years is by any means exceptional and should be taken into account by the market.

President Energy (PPC): Corp Frac on Very encouraging results from President’s first fraccing operation at its Puesto Flores field in Rio Negro province. This is the first time the Precuyo formation has been targeted and initial results are ahead of expectation, with the well now producing at over 3x the pre-frac rate. The well is still in clean-up mode and it will take a month to better understand post-frac performance. Nevertheless, this has given management the confidence to start planning a more extensive frac programme across existing and potentially new wells. With payback on investment estimated to be under six months, an extensive programme will further enhance an already attractive valuation. Couple that with the improving outlook in Argentina, and this becomes hard to ignore.

"The daily test rate of oil production 28m (c. 175 bpd) is 3x greater than the afor-mentioned pre-frac level."

The new fracking method means the flow rates are 3x more than was previously possible. C'mon PPC use this method on all new wells and workovers please and massively increase all the flow rates by 3x. Then we would see the SP go BOOOM....

An extra 175 BOPD is good. Potentially a fracking programme this year at Puesto Flores where the other wells would be expected to produce significantly more than that.

It's good news. Maybe exit rate of more than 4900......

PPC is greatly undervalued based on analysis and valuations of the Company, but we'll need a lot more people buying a lot more shares before the SP and get going.

Hopefully a steady news flow for the rest of this year can help. 4900 BOPD by the YE is a 150% increase on last year, hopefully the SP can do the same

Is Paraguay still planned for Q1 next year or has it been pushed back further?

YE price? Between now & then, there are lots of targets for PPC to meet. Workovers & Exploratory drilling in Argentina. Gas in Argentina. EV, PP & Las Bases. Plus workovers in Louisiana. That's enough for an RNS or two every month. PPC start doing that & the SP will move up. Hit the target of 4900 BOPD by YE and the SP should react accordingly.

If PPC achieve their goals and update the Market regularly then confidence in the company should increase massively and increased Production + increased confidence/perception should have a compound impact on the SP. If that all happens then I reckon 15-18p, but that's a couple pretty big IFS to be fair....

5/8's - maybe the SP has hot the bottom and is now on the way back up. Might be worth investing back in..... ;-)

Thanks for the update, Stockable.

Integration of Puesto Flores and Estancia Vieja into a single concession is very interesting. Be good to have it spelt out in an RNS exactly what the benefits are here (once achieved of course).

SP up a little yesterday & today (so far). Bit of a correction by the looks of it. Maybe back to 9p by the end of the week....

Copy pasted from the FT. - https://www.ft.com/content/ebad08f8-98cd-11e9-8cfb-30c211dcd229

London-listed President Energy is primarily focused on Argentina, where it is an explorer and producer, although it is also active in neighbouring Paraguay.

“Contrary to mainstream investor thinking, the reason we’re happy to be there [Argentina] is we believe in the medium-to-long term future of the country,” said its chief executive, Peter Levine. “The darker days are going.”

Mr Levine, who worked in Russia for 20 years, said that, if anything, the “misplaced fear factor” that had deterred big companies from entering Argentina had helped President grow in the country.

The company has acquired 18 assets from Chevron or ex-Chevron concessions, and Mr Levine believed small-cap activity was now encouraging bigger oil groups to look at the country with renewed interest.

In 2018, President’s turnover rose by 163 per cent to $47.2m, up from $17.9m. But its share price has fallen about a quarter in the past year, something analysts at FinnCap said was hard to reconcile with the company’s promising performance.

2019 plans were/are significant. I agree though that the 1st half year has been underwhelming. 5 workovers completed so far, but no RNS's confirming how many additional BOPD have been added by each. Disappointing 1st half of the year. However with lots of work/projects most of the work is planning & prep, so it could be that we start to see lots of results in the 2nd half of 2019. Would be good to have a positive RNS each month confirming success of workovers/exploratory drilling/bringing gas online etc.

Meeting the 2019 plans should push the SP back up to 10-12p. 4900 BOPD by year-end might even see the SP push north of 12p. But.... for the SP to go really big, we will need transformational news. A strike in Paraguay, or start paying Dividends. (I'm not saying PPC are in a position to pay Divs at the moment, but it is a stated aim that they are working towards).

Agreed Northern, but.... I think a monthly status report giving updates on progress would be really beneficial just to keep us investors in the loop. 2019 work was definitely weighted very heavily towards the 2nd half of the year, so I guess Jan-June was a lot of groundwork, planning and prep, and things should start picking up soon....

Speaking of which, the first of three gas compressors has arrived on site at Las Bases. Pic here-
https://twitter.com/PresidentPlc/status/1141277892371984386

Agreed. My expectations is that the work to date will be a mixed bag and have minimal impact. But I would be very happy to be surprised. Positive results, and maybe PPC pull a rabbit out of the hat and announce another acquisition or a farm-in partner in Paraguay. Haha! Wouldn't that be nice. Might see 10p again....

Thanks AP, I expect you're right. Fingers crossed it's a good update....