2 Sep 2019 11:12
2 September 2019
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Further update on Argentina
President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides a further update on recent events in Argentina.
The Government of Argentina on Sunday 1 September announced certain currency controls aimed at reducing market volatility and containing the impact of fluctuations of financial flows on the real economy as well as, inter alia, at assuring the normal working of the economy.
The measures, targeting capital flight, do not restrict trade nor are they expected in any material way to adversely affect President's ability to service and repay it's inter group debts in the normal course of business. These measures are therefore not anticipated to have any material adverse effect on President's business which continues in the normal way.
As for the recent Decree regarding oil prices, the Company anticipates that there will be in the near future a certain and welcome level of walking back from the full extent of such measures resulting in no small part from the strong, vociferous and almost unprecedented reaction of producers and Provinces alike which have included serial court applications including to the Supreme Court itself. Further details of any beneficial development are awaited possibly as early as later this week and will be communicated to shareholders as soon as they are available.
Peter Levine, Chairman, commented,
"There is no denying the macro situation in Argentina is challenging and volatile and everyone who believes in the medium to long term prosperity of this Country from all sides of the political spectrum hopes for a more stable position once the uncertainty of the impeding elections is resolved.
"Irrespective of this we note the understandable concerns of our shareholders, hence the need to keep the market updated as we have done, are now doing and will continue to do. We do so from a position on the ground as indeed I am and have been at all times over this recent period.
"Notwithstanding this, as stated above, the measures announced on Sunday are not expected in any way to materially affect President's operations or its ability to conduct it's business as currently planned. Indeed, both the leading Presidential candidates have stated that the health and future of the hydrocarbon industry including continued investment is of strategic importance to the economy of Argentina.
"Shareholders should be assured that in these undoubtedly challenging times affecting the macro economy we remain calm, razor focused and confident in the future. With a well managed business, concentrating on cash flow and margins we prefer to and will see each challenge both as something to solve without delay and importantly as an opportunity."
Contact:
President Energy PLC | +44 (0) 207 016 7950 |
Peter Levine, Chairman | |
Rob Shepherd, Group FD | |
finnCap (Nominated Advisor) | +44 (0) 207 220 0500 |
Christopher Raggett, Scott Mathieson | |
Whitman Howard (Broker) | +44 (0) 207 659 1234 |
Hugh Rich, Grant Barker | |
Tavistock (Financial PR) | +44 (0) 207 920 3150 |
Nick Elwes, Simon Hudson |
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