Member Info for fiveeights

The Disposal

After considering a recent offer from the Operator of a significantly lesser value, President's interest has now been sold to Alpha for the above sum together with the assumption by Alpha of the Liabilities and indemnification of President in respect thereof. Alpha will take over the US$150,000 Surety Bond for the Field, locked up through the Field life.

Alpha is a company whose ultimate beneficial owner is Peter Levine, the Chairman and largest shareholder of President Energy, and the purchase price will be satisfied by reducing the sum of US$525,000 from the debt owed by President to IYA Global Limited ("IYA"), another company whose ultimate beneficial owner is Peter Levine. The effect of this is to further lessen the debt and interest burden on the Company, which has already been reduced by the recent US$2 million debt capitalisation of monies owed to IYA thereby freeing up more of the existing financial resources for further growing the profitable Argentine producing assets.

KRTH - here's the form. has previous on this....
Sale of Non-Operated Asset in Louisiana
Tue, 2nd Jan 2018 07:00

RNS Number : 6362A
President Energy PLC
02 January 2018

2 January 2018

PRESIDENT ENERGY PLC

("President", "the Company" or "President Energy")



Sale of Non-Operated Asset in Louisiana



Operated assets in Louisiana continue to generate some US$2.5 million pa in free cash after all opex, G&A and taxes



President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, announces the disposal of its entire non-operated, non-core beneficial interest in the East White Lake Field, Vermillion Parish, Louisiana, USA ("the Field") with effect 1 January 2018 ("the Disposal").

The Disposal of this peripheral asset to Alpha Imperial Corp., ("Alpha") for a total sum of US$525,000 reduces debt and at the same time provides more resources for President to concentrate on its core Argentine assets where production continues to increase with the successful workover programme at the Puesto Flores Field continuing and pilot testing of certain wells at the currently shut-in Estancia Vieja Field planned for Q1 2018.

The effect on President of the Disposal is minimal with the Company's continuing share of its operated assets in Louisiana robust and stable, producing approximately 300 boepd, generating annualised free positive cash on current oil prices after all opex, G&A and taxes of some US$2.5 million per annum and the recent Triche operated acquisition performing substantially ahead of expectations.

East White Lake Field

The Company held a non-operated 25% working interest (21.8% net revenue interest) in the main Field and approximately 2% working and net revenue interest in the "Houston" well also in the Field. In the calendar year 2017, President is estimated to have received a sum equivalent to approximately US$22k per month from the Field as a whole after opex, not insubstantial Operator Charges but excluding depreciation. Average production for the last 3 months of the year net to President is estimated at approximately 65 boepd and in general is declining with, in President's opinion, no possible significant economic uplift. Reserves at the Field are currently estimated by President at 154 mboe and therefore the Disposal makes no material difference to the Group's overall 1P and 2P reserves which remain at over 16MMboe and 25MMboe respectively. There will also be certain liabilities for de-commissioning and abandonment at the end of life of the Field ("the Liabilities") for what was at one time a significant producing field with a number of wells.

Taking into account the above and President's strategy to concentrate on operating its own increasing profitable producing fields, it was decided it was an appropriate time to dispose of the Company's interest in the Field.

The Disposal

After considering a rece

KRTH - Rob Shepherd on $400k WTF. Is he full time? His twitter feed from this morning has him at a nice leisurely pace. Isn't the LATAM farm out supposed to be concluding soon

Fevertreeman: another investor progresses to the next stage of grief. This one must be anger. The PPC board is like open therapy.

No

crippling spread. Puts everyone right off

KRTH - i think q2 received an answer. They were well worded questions

AParky - Your top slice looks like the smart money now

comeonvog - any thoughts on identity of the partners. Democratic rules out quite a few NOCs

No show stoppers in this update but no banana skins this time. Good progress on the ground. Underpins the recent near doubling in price. Nice to get confirmation on oil and gas prices received and further conf on op well cost reductions so net back should be good. Bit confused on the point of 4000boepd being recorded as a peak daily rate only. Current production at outlook 3600-4000 is ok but some others would like this higher and expected it so. IMO.

"With regards to Paraguay, the farm-in discussions continue with the previously identified party, a substantial national energy company from a non-Paraguayan, democratic, economically stable and technologically advanced country. "
So it's not Petropar. Guessing begins again

Selling part of your holding whilst retaining the rest

You can well understand top slicing especially this morning when it was up at 2.8p. I have certainly top sliced today and very happy with returns since Nov. It is going to be volatile this week. MCap has virtually doubled since PL's blog on IFC and Berenberg. If it's Paraguay on Monday then this goes stellar. However, enough of us have seen booby traps in some of these PPC announcements. It's going to be very interesting and is certainly good fun to watch unveil

2.9m trade delayed from yesterday is what got the market moving I suspect. Decent position

When spluttering into cornflakes this morning having read the reserves update, who amongst thought that we would be 12% up come 4.30!?

Dropping Paraguay 536 MMbo undiscovered oil-in-place into an Arg reserves RNS for no obvious reason and not having done it before is, well, thought provoking at least. Especially when you are in advanced talks with a NOC.

Brilliant incremental enhancement to the bottom line. $4 is significant. What are the net backs at Puesto Flores/Estancia Vieja now and after this?

I thought you were out of this following your last few posts before the rise

That is not enough. A good farm out deal and you are looking at 4p IMO

One bit of news confirmation in the RNS is on domestic gas prices in Arg. Welcome confirmation in my opinion. In the 7 Dec RNS they were getting $2.1MMbtu. This is now confirmed to have risen to $2.3MMbtu. I would have liked confirmation on domestic oil prices.