PPC.L Regulatory News (PPC)

30 September 2016

PRESIDENT ENERGY PLC

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

Interim Results

President (AIM:PPC), the oil and gas exploration and production company with producing assets in Argentina and Louisiana and an exploration focus on Argentina and Paraguay announces its interim results for the six months ended 30 June 2016.

Operation Summary

· Argentina production in period increased by 39% over H1 2015

· Current group production for September 2016* approximately 670 boepd, a YOY increase of 23% with the benefit of both the current Drilling and Coiled Tubing campaign in Argentina and further Louisiana production still to come on stream

· Argentina average production for September 2016* of approximately 500 bopd, a YOY increase of some 66% with realised prices currently of US$56 per barrel

· Current level of Louisiana production approximately 170 boepd and projected to increase in October to over 200 boepd

· First half average Group daily production increased by 13% to 494 boepd (2015: 439 boepd), with increases in Argentine output offsetting now resolved production reductions in Louisiana

· Cost reduction plan sees Group administration costs 24% lower than in H1 2015 with staff costs declining by 36% over same period with further reductions projected for H2 2016

· Strong and expanded Management team now in place in Argentina to support increased H2 operations

Financial Summary for H1 2016

· Revenues of US$4.6 million modestly increased versus the same period in 2015 (H1 2015: US$4.5 million) notwithstanding lower dollar oil per barrel realisations in both the Company's producing areas and disruption due to workovers and key wells shut in

· Average realised price of US$58 per barrel in Argentina (H1 2015: US$70 per barrel) the profit effect of which was offset by the Peso devaluation of 64% compared to the value at June 2015

· Average realised oil price of US$35 per barrel in USA (H1 2015: US$52 per barrel), currently US$42 per barrel

· Gross loss of US$2.3 million (H1 2015: US$0.7 million loss) after taking into account US$1.5 million spent on workovers, the benefits of which will be recorded in H2 2016 as well as US$1.4 million of depreciation

· Total assets of US$161.3 million (H1 2015: US$202.7 million) principally reflecting exchange rate losses on translating foreign operations arising from the 64% devaluation of the Argentine Peso from H1 2015 and not being indicative of any significant impairment in value

· Cash balance at period end of US$1.1 million (H1 2015: US$1.8 million)

· US$9.2 million of US$15 million revolving loan facility drawn at period end (H1 2015: US$8.1 million) and the maturity of both that facility and the convertible loan of US$5 million extended until 30 June 2019

· H1 Results reflects significant gearing up and preparation for H2 Operational Campaign

· President has now invested the level of financial commitment required under the Puesto Guardian Concession, Argentina, Pilot Plan with no further mandatory investments required until the expiry of the Concession in 2050

Outlook for H2 2016

· Group focused on target of achieving production of 1,200 boepd by the year end

· Drilling of DP1002 S/T and Coiled Tubing Campaign ongoing

Commenting on today's announcement, Peter Levine, Chairman said:

"The key focus so far this year has been the lead up to the operations currently underway in Argentina. The post period events capture more appropriately the direction in which we are seeking to take President, with a strong focus on building value for all stakeholders.

The near term strategy for this year is to demonstrate increased productivity of our proven oil reserves, generating stronger free cash flow and reducing interest payments and non-operating administrative expenses thereby increasing the core value of our Group.

Once achieved, our subsequent objectives are to re-address our considerable exploration portfolio and grow production through existing fields and by way of acquisition in our focus countries."

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.

The 2016 Interim Report and Financial Statements will be made available at www.presidentenergyplc.com. The Report and Accounts will not be printed and mailed to shareholders though copies will be available on request.

This announcement is inside information for the porpoises of article 7 of Regulation 596/2014

Contact:

Chairman's Statement

Summary

We remain firmly focused on our target of achieving Group production of 1,200 boepd by the year end. Accordingly the figures for the reporting period belie the material progress made in the year to date and, are now historic when taking into account the developments post-period. Such targeted increases in production will significantly improve the Group's net backs due to the coverage of fixed costs by the existing levels of production.

The results for H1 2016 reflect the significant work streams and associated costs preparing for the H2 Operational Campaign in Argentina. Focus has continued on reducing Group administrative costs in favour of building in-country expertise in Argentina.

Group production for September 2016* is approximately 670 boepd, a year on year increase of 23% over same period in 2015 with the benefit of the current Drilling, Coiled Tubing Campaign and Louisiana production still to come on stream.

Taking into account the investments made to date at Puesto Guardian since the grant of the new Concession, the Company has now invested the level of the mandatory financial commitment required under the relevant Pilot Plan, meaning that there are no further mandatory investment requirements under the Concession until its expiry in 2050.

The macro investment climate in Argentina is also improving and President is located in an area of increasing interest from both international investors and oil companies. President has a strong underlying asset base and core experience and we remain focused on pursuing future growth potential.

Louisiana continues to provide net cash flow albeit at significantly reduced levels due to the oil price decline and shut-in wells. Current progress suggests that production will recover moving towards the end of the year.

Finally, whilst the Group's exploration assets have not been forgotten in any way, the focus in the present year has been to build up production in Argentina and increase cash flows from those assets.

Operating Report

Argentina

· Argentine production in period increased by 39% over H1 2015

· Argentine average production for September 2016* of approximately 500 bopd, a YOY increase of some 66%

· Extensive workover campaign of existing wells in H1 2016 now starting to bear fruit in H2

· Coiled Tubing intervention and stimulation campaign now commenced on old shut in wells

· Strong and expanded Management team now in place to support expanded H2 operations

· Average realised price of US$58 per barrel in Argentina (H1 2015: US$70 per barrel) the profit effect of which was offset by the Peso devaluation of 64% compared to the value at June 2015. Current realised price US$56

· Trend of materially reducing administrative cost base and focusing on building up operational management and expertise in country

· President has now invested the level of financial commitment required under the Puesto Guardian Concession, Argentina, Pilot Plan with no further mandatory investments required until the expiry of the Concession in 2050

Paraguay

· The Group remains committed to its Paraguay exploration assets and will revisit plans in H1 2017 after the current Argentine work programme

· The Group has received environmental license on the Putamayo Block, adjacent to President's Pirity Concession and has made an application for prospection, exploration and exploitation of that area

· Geological and Geophysical studies continue

· Taking into account market conditions and pending results of the current Argentine work programme, consideration of possible farm-outs deferred

Louisiana

· Current Level of Louisiana production approximately 170 boepd and projected to increase in October to over 200 boepd, recovering from a low H1 2016 average production of 179 boepd (H1 2015: 209 boepd) due to well shut-ins and natural declines

· Average realised oil price of US$35 per barrel (H1 2015: US$52 per barrel), currently above US$42 per barrel

Australia

· PEL 82 Block is still retained by the Company and continues to remain under review with actions suspended due to the current market conditions. This Block is written down to zero value in the books of the Company.

Financial Highlights

· Revenues of US$4.6 million slightly increased versus the same period in 2015 (H1 2015: US$4.5 million), notwithstanding lower dollar oil per barrel realisations in both producing areas and disruption due to work-overs and key wells shut in

· Average realised prices US$35 per barrel in USA (H1 2015: US$52 per barrel) and US$58 per barrel in Argentina (H1 2015: US$70 per barrel) the profit effect of which was offset by the Peso devaluation of 64% compared to the value at June 2015.

· Cost of Sales of US$6.9 million (H1 2015: US$5.2 million), which includes US$1.5 million (H1 2015: US$ nil) on expensed Argentine well workovers designed to increase flow rates, the benefit of which is being seen in the second half of 2016

· Well operating costs, excluding workovers, of US$4.0 million (H1 2015: US$3.5 million) and DD&A of US$1.4 million (H1 2015: US$1.8 million) make up the remaining component of Cost of Sales. On a like for like basis, the well operating costs before DD&A in H1 2016 are US$43.54 per boe (H1 2015: US$43.44 per boe) but these will come down as production rises as there is a large component of fixed costs particularly in Argentina

· Gross loss of US$2.3 million (H1 2015: US$0.7 million loss) after taking into account US$1.5 million spent on workovers, the benefit of which will be recorded in H2 2016, as well as US$ 1.4 million of depreciation

· Administrative expenses of US$2.0 million, or US$22.41 per boe, (H1 2015: US$2.7 million, or US$33.57 per boe) reflecting effects of the Group cost reduction plan lowering staff costs to US$1.2 million (H1 2015: US$1.9 million), and non-cash share based payments of US$0.1 million (H1 2015: US$0.7 million).

· Total assets of US$161.3 million (H1 2015: US$202.7 million) principally reflecting exchange rate losses on translating foreign operations arising from 64% devaluation of the Argentine Peso from H1 2015 and not being indicative of any significant impairment in value

· Cash balance at period end of US$1.1 million (H1 2015: US$1.8 million) after cash out flow from operating activities of US$1.9 million (H1 2015: US$0.3m outflow) and investments of US$2.1 million (H1 2015: US$10.8 million)

· US$15.0 million revolving loan facility extended until 30 June 2019 together with US$5 million Convertible Loan. US$9.2 million of revolving credit facility drawn at period end

Outlook for H2 2016

· Group focused on target of achieving production of 1,200 boepd by the year end

· Drilling of DP1002 S/T and Coiled Tubing Campaign ongoing

Glossary of Terms

Peter Levine

Chairman

30th September 2016

Condensed Consolidated Statement of Comprehensive Income

Six months ended 30 June 2016

Condensed Consolidated Statement of Financial Position

As at 30 June 2016

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2016

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2016

1 Nature of operations and general information

President Energy PLC and its subsidiaries' (together "the Group") principal activities are the exploration for and the evaluation and production of oil and gas.

President Energy PLC is the Group's ultimate parent company. It is incorporated and domiciled in England. The Group has onshore oil and gas production and reserves in Argentina and the USA. The Group also has onshore exploration assets in Paraguay, Argentina, the USA and Australia. The address of President Energy PLC's registered office is 1200 Century Way, Thorpe Park Business Park, Leeds LS15 8ZA. President Energy PLC's shares are listed on the Alternative Investment Market of the London Stock Exchange.

These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 29th September 2016. The financial information for the year ended 31 December 2015 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2016 and 30 June 2015 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2015 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

2 Basis of preparation

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2015, which have been prepared under IFRS as adopted by the European Union.

These financial statements have been prepared under the historical cost convention, except for any derivative financial instruments which have been measured at fair value. The interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2015.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.