25 Nov 2021 07:00
25 November 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Completion of Paraguay Farm-out of Pirity Concession
CPC Corporation, Taiwan and President now in Joint Venture in Paraguay
President Energy (AIM: PPC), the energy company announces the completion of its farm-out of the Pirity Concession, Paraguay.
President is pleased to confirm that the farm-out to CPC Corporation, Taiwan ("CPC"), the state-owned energy company of Taiwan as inter alia referred to in the Company announcements of 8 June and 3 September 2021, has now fully completed, on the terms referred to in the announcements, after satisfaction of all applicable conditions.
CPC and President, through their subsidiary companies, now have an equal 50/50 interest in the Pirity Concession, Paraguay with President continuing as operator under an international form of Joint Operating Agreement.
Both CPC and President look forward to the drilling of the exploration well at the Delray Complex within the Concession. The Company estimates that this complex has 230 million barrels of Pmean unrisked original oil in place. The location of the exploration well within the complex has been identified and planning has begun for the drilling of the well in H1 2022 after the end of the rainy season.
The well to be drilled is in a different part of the Concession, with completely differing sub-surface features and structure to the two wells drilled by President in 2014. Whilst all exploration drilling is prudently and necessarily weighted heavily to the downside in terms of success, Delray with its complex of prospects is the stand-out exploration location to be drilled in the Concession geologically as well as in relation to the size of the container aka the prize.
A brief presentation of the Delray prospects dated 8 June 2021 can be found within the Investor Presentation section of President's web site at www.presidentenergyplc.com
Peter Levine, Chairman of the Company commented:
"We are very pleased to have CPC as a partner in our oil business in Paraguay and look forward to working with them
"It is obvious that all exploration carries a health warning with material risks to the downside. However, the learnings from our previous wells in an entirely different structure within the Concession together with subsequent sub-surface studies at Delray points to the fact that the forthcoming exploration well and size of the prize is a compelling well to drill
"The Taiwanese authorities have acted honourably and transparently throughout our discussions which were intersected and understandably lengthened by the COVID epidemic. It is clear CPC have significant in-house expertise and that their involvement in this project has been carefully and thoroughly considered from a technical point of view. Their expertise will be mutually beneficial going forward
"Taiwan has long established links with Paraguay and is a great and valued friend of the country. We look forward to playing our part in strengthening those relations further by this newly established venture and also look forward to possibilities of expanding our relationship with CPC as opportunities may present themselves".
Contact:
President Energy PLC Nikita Levine, Investor Relations
| +44 (0) 207 016 7950 info@presidentpc.com |
finnCap (Nominated Advisor and broker) Christopher Raggett, Tim Harper
| +44 (0) 207 220 0500
|
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, and Angostura exploration contract, all of which are situated in the Rio Negro Province 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.
Atome Energy is the green hydrogen and ammonia subsidiary of President Energy PLC with intended operations in the Americas and Europe and a targeted separate listing on the London Stock Exchange market later in 2021.
The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets capable of delivering positive cash flows and shareholder returns. With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy 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