PPC.L Regulatory News (PPC)

25 September 2015

PRESIDENT ENERGY PLC

("President" or "the Company")

ARGENTINA RESERVES & PROSPECTIVE RESOURCES UPDATE

Significant Increase in Reserves and Prospective Resources

2P Oil Reserves increase by 28%

President announces a significant increase in Reserves on its 100% owned and operated Puesto Guardian Area, with the issue of a new independent statement of Crude Oil Reserves carried out by the international petroleum consultancy, Gaffney, Cline & Associates ("GCA") which supersedes the previous 2014 statement of GCA.

In addition, President has completed further geological studies on its Paleozoic deep gas/condensate prospect at the Martinez Del Tineo field on the Concession and on associated prospects at President's adjacent Matorras Licence and announces significantly increased management estimates of the Prospective Resources compared with the GCA assessment published in January 2012.

Highlights

2015 GCA Assessment - Puesto Guardian Area

· 1P Proved Oil Reserves increase by 21% to 11 MMBbls*

· 2P Proved and Probable Oil Reserves increase by 28% to 18.1 MMBbls*

· 3P Proved, Probable and Possible Oil Reserves increase by 32% to 23.1 MMBbls*

· NPV10 (net present value discounted by 10%, pre-corporation tax) of President's 2P Oil Reserves increases by 10% to US$ 329 million

2015 Management assessment - Martinez Del Tineo (MDT) and associated Prospects

· Management now assesses that President has unrisked recoverable Best Estimate Prospective Resources** as of 30 June 2015 of 6.6 Tcf of gas and 166 MMBbls of condensate relating to the deep Paleozoic gas/condensate prospect at the Martinez Del Tineo field and associated prospects on President's adjacent Matorras Licence.

Peter Levine, Chairman, commented

"The independently audited reserves increase is a clear affirmation of the potential in our Puesto Guardian Concession. We are now addressing the challenge of narrowing the ratio between production and reserves by concentrating on developing this asset to its maximum potential in respect of which a further announcement will be made in due course.

The MDT prospect remains tantalising. Whilst we must recognise the usual and subjective exploration risks, the potential prize from this on-shore, easily accessible asset in a country with a ready gas market currently offering a gas price of US$ 7.5/MMBtu, is compelling."

Summary

The GCA Assessment

Based upon President's new Concession for Puesto Guardian as announced on 14 September 2015, GCA has produced an updated statement of President's Oil Reserves and Net Present Value for the five fields in the Concession effective as at 30 June 2015 (the "Statement"). The Statement takes into account the new Concession terms including the Concession now extending to 2050.

A full copy of the Statement is now available on the Company's website which contains a glossary of the key terms used.

The Martinez Del Tineo (MDT) Deep Gas/Condensate Prospect

GCA had previously assessed that President had unrisked recoverable Best Estimate Prospective Resources as of 31 October 2011 of 570 Bcf of gas and 14.5 MMbbls of condensate relating to the MDT deep Paleozoic gas/condensate prospect. The GCA economic evaluation of the unrisked Best Estimate Prospective Resource gave a NPV10 value of US$1,028 million calculated at a gas price of US$4/MMBtu and a condensate price of US$65/bbl.

As a result of recent technical studies, including studies undertaken by President on previously unrecorded nearby out-crop sections, re-processing of all regional seismic and incorporation of recent knowledge from the exploration successes across the border in Paraguay, President has now high-graded its management estimates of the Prospective Resource and included associated prospects in President's adjacent Matorras Licence area.

President has now assessed that the unrisked recoverable Best Estimate Prospective Resource for the MDT prospect as of 30 June 2015 is 2.3 Tcf of gas and 59 MMBbls of condensate, with an overall chance of success of 25%. 

With the inclusion of the Prospective Resources in the neighbouring Matorras Licence, the aggregated, unrisked recoverable Best Estimate Prospective Resource for these Paleozoic prospects as of 30 June 2015 is 6.6 Tcf of gas and 166 MMBbls of condensate.

The MDT prospect can be explored by the deeper leg of a development well at the MDT field drilled to intersect and produce the shallower proven and probable oil reserves, thereby saving costs of a dedicated exploration well. The deeper exploration leg in MDT would also act as a test of concept for the Paleozoic Prospective Resources in the Matorras Licence which are dependant prospects.

Current gas prices in Argentina are running at US$7.5/MMBtu and in excess of US$70/bbl for condensate.

Armed with the new long term Concession, President is continuing discussions with potential strategic partners relating to this prospect.

A new presentation on the MDT deep gas and associated prospects is now available on President's website.

* The GCA figures reflect the current 100% ownership, gross of royalties and are estimated on the SPE (Society of Petroleum Engineers) standard.

** The unrisked recoverable Best Estimate Prospective Resources as of 30 June 2015 of 6.6 Tcf of gas and 166 MMBbls of condensate is the aggregation of the individual Prospective Resource estimates of the deep Paleozoic gas/condensate prospect at the Martinez Del Tineo field and the associated prospects on President's adjacent Matorras Licence.

Glossary of Terms

Tcf. Trillion cubic feet (gas)

Bcf. Billion cubic feet ( gas)

MMBtu Million British Thermal Units ( gas)

MMbbls Million barrels of oil

Miles Biggins, Bsc Joint Honours University College London, with 25 years of experience in the oil and gas sector, is a Petroleum Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

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