Member Info for DRichi

The below text is copy pasted from Malcy. "The shares are worth way in excess of the current price". I agree with that, just hoping we can see a re-rate soon. Maybe with news from more successful workovers or the 1/2 Year report.

The SP will tick up soon, maybe just a little bit back up to 12p, or hopefully a re-rate and go multiples of where it is today. One can but hope....... GLA.

Regular updates from PPC are very useful and serve to remind investors how well the company is doing in Argentina even if the share price is taking an age to respond to the good news. Today the update is on the Puesto Flores/Estancia Vieja concession which continues to deliver the goods as investment is increased. Current oil production is 2,000-2,100 b/d with the workover campaign continuing, planning for three development wells is under way and expected to start at the end of September. This programme is entirely funded by PPC resources and facilities and so far is under budget with no accidents.

Extended testing at the Estancia/Vieja field has been successful so far with EV-8 producing gas at the equivalent rate of 200 b/d whilst testing at EV-19 indicates nearer 250 boe/d. Data from the EV-13 well earlier in the year will also be used to assess capacity and field potential. The company plans to self-generate power here and with work already under way it could be up and running by early 2019 given the good flow rates achieved by the EV wells.

As I said at the top this is more good news from PPC with both the oil at PF providing significant cash flow and gas at EV providing more than enough power to make the field self sufficient in energy next year with the possibility of much more. The shares are worth way in excess of the current price which must still be reflecting Argentine worries which can now be discounted.

The Doc- Good spot. "Q&A at 4:30 pm (BST) on Wednesday 18 July 2018"

Plenty of time to think up some good questions, and leaves the afternoon free to get a good seat ready for the game. :-)

Investor Conference at 16:30 today.
Phone#: 0800 358 9473
Participant Pin# 8696 5780#

The RNS says that this will become a regular thing, which is good. Will dial-in if still in the office, (but was hoping to be down the pub by then)...

Agreed. It's a professional video. Tells a good story and is good to see PPC engaging with PI's.

I think the current SP is half it's fair value, so when the good news flow comes (and there's lots of possibilities here) we will see tick ups for that, and also a correction from it's current low valuation.

Lots of reasons to be positive. Looking fwd to seeing some big rises soon.

Ps. Off topic. England to win 3-0 tonight. Kane penalty, Stones or Maguire header from a corner, and Sterling to shin one in. :-)

Thanks for the links Gents. It's good news that the Cap is being lifted. IIRC PPC were getting $68 per barrel. Current price of Brent crude is $78, so that's an extra $10 a barrel, at the current BOPD of 3000 = an extra $30,000 a day.

Kid- Can you elaborate? What news is this? Where did you see it?

Cap lifted? Is this where PPC had pre-arranged price for Argentinian oil and it's now been taken away which means PPC can get a better price? Worth £5M-£10M more?

Could this be related to the meeting with the Secretary of Energy for the Rio Negro province that Rob Shepherd mentioned below?

Welcome aboard. Hopefully you've caught the SP right at the bottom of the dip.

My target SP increases (based on my earlier post)
Will come this year: between +4p & + 7p
Might happen this year: between +3p & +5p
Will happen next year- +masses IF successful
Might happen this year or next: plus anywhere between +4p to +20p

These are just my estimates, hopefully one day I'll be right.....

BigSmoke-
History- when PPC was producing 600 BOPD the SP was 6p (2016- Sept 2017).
Now- Production is at circa 3000 BOPD and the SP is 9p
Will come this year: further workovers of PF wells which will increase production by x amount. Gas play in EV. And EV workovers in Sept.
Might happen this year- end of legal dispute, and farm-outs in Arg/Para
Will happen next year- drilling in Paraguay
Might happen this year or next - Acquisition of more producing assets in Argentina.

Also- I hope that when the half-year figures are released in Sept, the PF workovers should be complete so PPC can add in the current rate of production then which should led to a SP re-rate.

I don't see any downside risk, and there's lots of irons in the fire that should make the SP go up. But the market is a funny thing & nothing is ever 100& certain, so who knows where the SP goes....? I think the only way is UP, I'm in.

Rob- thanks for clarifying. Speaking for myself, & I'm sure a lot of other SH will agree with me, we think that you and PPC are doing a good job, the increase in BOPD has been impressive, and we are excited about the potential increases and improvements to come.

Just very disappointed that the share price isn't at least double the current SP (as by my calcs it should be). Anyway, if England can win on penalties, maybe anything is possible; so here's to winning the World Cup, and getting to £1 a share..... :-)

Robaich, Genghis- Many thanks for going and providing these updates.

Was there any discussion of acquisitions? In the SH con/f a couple weeks back PL told stories about 2 opportunities they turned down but said that PPC were still looking in Argentina. Am still hoping that PPC can find and purchase another Nequien Basin

by Robert Shepherd, Group Financial Director. Who yesterday purchased 300,000 ordinary shares taking his holding to 609k. Good to see. Since last Friday actually has been almost all Buys. Not huge volume, but as long as it's Buys:Sells at 9:1 the price can only go one way......

Options issued to Directors at 13.88p (first tranche), 20.81p (second tranche) and 27.06p (third tranche). I'll be happy to see these options exercised. I don't think it should take that long to get to the 1st tranche. Previously issued Options have not been exercised, and a total of 10,550,000 previously issued options are expected to expire on 29 July 2018; such options represent 1% of the Company's issued share capital. 10.5M less shares in issue = SP tick up PL not taking up his 11.3M shares is commendable as well. That's 22M less shares in issue than there could have been. Another positive RNS. And something that when this SP gets going should help it tick up more.....

"Pierre Andurand, a hedge fund manager who oversees more than $1bn in investor money and bets on oil price moves, says it could hit $150 a barrel within two years, partly due to the focus on peak demand while consumption is still rising. Other industry executives and analysts see a lower rise but believe prices will return to above $100 a barrel." Interesting article from the FT- https://www.ft.com/content/a41df112-7080-11e8-92d3-6c13e5c92914

"The speed, efficiency and success rate of the work on the acquisition has been outstanding and it has clearly been completely missed by the market who are obviously concentrating, incorrectly, on macro issues in the country. In the meantime the three wells have beaten production targets for the entire work programme and we are reminded of the ‘significant potential yet to be realised’ in this concession which in my view should see a share price target well in excess of 30p." - Malcy 30p would be a good price for what PPC currently have, at 3000 BOPD. That would make the maths easy too. 4000 BOPD (which PPC should hit with the other workovers) then SP = 40p. Plus Sept 3 well program = 5000 BOPD = 50p plus the acquisition in the pipeline = total of 15000 BOPD = £1.50 by Christmas. (Then Paraguay next year to strike big and triple that SP of course....) Well, hell, if England can win a World Cup game then maybe anything is possible...... GLA!!!!

The lack of SP movement is the worrying/frustrating thing. Based on the progress this year I would have expected this to be 14-15p now. I expect/hope the market will catch up one day and patience will be rewarded. Just wonder when's that likely to be....

Very positive RNS. 3/8 workovers done. PF now producing 2100 BOPD. Plus 500 from PG, plus Louisiana. PPC was at 500 at Y/E 2016.That's up to 3000 BOPD. And there's still 5 workovers to go, and that's before the 3 in Sept. Cracking result. Expecting a steady week of SP climbing now......

I'll be at the AGM and would like to be surprised otherwise but I don't think I'll get much more info than was given on the investors call last week. My tuppence worth is that those questions will all be played with a very straight bat. Please see my guesses at answers below; 1. Court case - "Can't go into details for legal reasons but team are working on it" 2. PG and those pesky pumps - incl costs "Focus has been on PF- drive to create value there- will address pumps in PG in time" 3. M and O farm out - level of interest "Various players in the data room, definite opportunities but NDA forms mean can't comment further" 4. Pguay farm out - level of interest "Various players in the data room, definite opportunities but NDA forms mean can't comment further" 5. Pguay - what happened about drilling P'guay by hook or by crook "PL was too optimistic about this. Resource focused on PF instead. PL promised new Paraguay President that drill will happen in 2019" 6. Lack of share purchases by BoD "Directors have significant holdings, and fully support the PPC project".

I'm not sure which assumptions have been made to say that "turnover will triple". I agree though that it does seem to be good grounds for optimism. Debts going down, overheads going down, oil price increasing, margins increasing, production increasing, (plus workovers and poss acquisition). One day soon this SP should really take off.....

JP- From the year end accounts; "Group turnover in 2018 on course to triple year on year (2017: US$17.95 million), following an 81% increase in 2017 from the previous year (2016: US$9.9 million)" So the official PPC estimate; call it $18M for 2017 - triple = $54M. But that's in USD so @ 1:134 = £40.5M