PPC.L Regulatory News (PPC)

21 October 2019

PRESIDENT ENERGY PLC

("President" or the "Company")

Acquisition and Subscription

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 conditional acquisition of an exploration contract in Rio Negro Province, Argentina (the "Acquisition") and the subscription for US$1.825m of new ordinary shares ("Ordinary Shares") in the capital of the Company (the "Subscription").

Highlights

On 18 October 2019, President Petroleum S.A, a wholly owned subsidiary of the Company agreed to take an assignment from Compañia General De Combustibles S.A. ("CGC"), a significant oil and gas producer in Argentina, of their 100% interest in the exploration contract area known as Angostura, Rio Negro Province, Argentina.

Separately, CGC, has agreed to invest US$1.825 million in a number of instalments by subscribing for new Ordinary Shares at the prevailing market price at the time each instalment is due.

The Acquisition

President has conditionally acquired from CGC the exploration contract covering the 384 sq km area known as Angostura in the Rio Negro province, Argentina (the "Exploration Contract"). Angostura is situated directly to the west of President's Las Bases Concession and the Company's pan-regional pipeline passes through the south west corner of the area.

Angostura currently produces 80,000 m3/day of gas (2.8 MMscft/day) and 50 bopd, representing in total slightly in excess of net 500 boepd, the Acquisition will therefore increase President's daily production by more than 10%. All the gas is currently compressed and dehydrated within Angostura, sent by pipeline to President's Las Bases facility and then conveyed by the Company's own pan-regional gas pipeline to offtakers. The oil will be taken by truck to Las Bases/Puesto Prado and added to President's existing oil production. There are currently no reserves booked for Angostura.

The Acquisition is conditional on the consent of the Rio Negro Province to the assignment of the Exploration Contract. It is currently anticipated that such consent will be given within the following 30 days. No consideration is to be payable by President for the assignment of the Exploration Contract with President assuming both income ,and certain liabilities and commitments in relation to Angostura.

Whilst the first period of the Exploration Contract extends until November 2019, President is entitled to request access to a second exploration period , with a royalty of 15% over volumes produced during the exploration phase. In the event that the Exploration Contract, in due course, is converted at the request of the Company into an Exploitation Concession of 25 years, for which under the law no bonus is payable, the royalty is reduced from 15% to 12%, and EDHIPSA (the Province's energy company and partner of President in its other blocks in Rio Negro) will thereupon take a 20% interest in the Exploitation Concession with a deferred carry.

A map showing the location of Angostura and its relationship with the other assets of President in Rio Negro can be viewed on the Company's website at www.presidentenergyplc.com.

The Subscription

CGC has agreed, conditional upon completion of the Acquisition, to invest US$1.825 million in President by way of the Subscription.

On completion of the Acquisition, CGC will invest the sum of US$500,000, converted into Pounds Sterling at the prevailing exchange rate on the day prior to completion of the Acquisition, ("the Initial Subscription Amount") in order to subscribe for such number of Ordinary Shares (the "Initial Subscription Shares"), calculated at the closing mid-market price per Ordinary Share ("MMP") on the trading day prior to the completion of the Acquisition. CGC has agreed not to dispose of any interest in the Initial Subscription Shares for a period of six months after their issue.

CGC will thereafter invest the remaining US$1.325 million in seven quarterly instalments in consideration for the issue of new Ordinary Shares at the prevailing MMP on the date prior to the relevant quarter date, with the first such quarterly payment being due on 25 January 2020.

Peter Levine, Chairman, commented as follows:

"This corporate action represents a continuation of the strategy of leveraging on our critical mass in Rio Negro and, in this case in particular, our strategic gas pipeline. The contemplated assignment would increase our production by over 10% whilst at the same time providing synergies and enhancing economies of scale.

"I welcome the contemplated investment of CGC, a substantial well-known and respected oil and gas Company, as a shareholder in the Company."

Glossary

Boepd barrels of oil equivalent (oil and gas) per day

Bopd barrels of oil per day

M3 cubic metres of gas

MMscft million standard cubic feet of gas

Contact:

Notes to Editors

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets.

The Company has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions, Rio Negro Province as well as in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support, including the IFC, part of the World Bank Group, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors rare access to the Argentinian growth story combined with world class standards of corporate governance, environmental and social responsibility.

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014