PPC.L Regulatory News (PPC)

30 September 2015

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 exploration assets in Paraguay and Australia, announces its interim results for the six months ended 30 June 2015.

Operation Summary

· First half average daily production 439 boepd (Argentina 231 bopd and Louisiana 209 boepd)

· Current group production over 585 boepd with increases from both Argentina and Louisiana

· Benefit of Argentine workovers reflected in current production of 315 bopd, with one producing well temporarily in maintenance, compared to average of 231 bopd for the period (H1 2014: 171 boepd representing the 50% of Puesto Guardian)

· Louisiana continues to provide positive cash contribution with current production of 270 boepd, a 29% increase on the average for the period of 209 boepd (H1 2014: 218 boepd)

· Next phase of Argentine workovers of shut-in wells being planned

· Concentration on controlling G&A and operational costs with real benefits apparent post-period. UK headcount reduced and salary costs cut to ensure capital focussed on operational activities

· Post-period independently audited Puesto Guardian 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million

Financial Summary

· Revenues of US$4.5 million (H1 2014: US$5.8 million), impacted by declining global oil prices

· Average realised price of US$70 per barrel in Argentina (H1 2014: US$74 per barrel)

· Average realised price of US$52 per barrel in USA (H1 2014: US$102 per barrel)

· Gross loss of US$0.7 million (H1 2014: US$1.9 million profit)

· Lower administrative expenses demonstrate trend of reducing cost base

· Total assets of US$202.7 million (H1 2014: US$162.9 million) reflect the growing South American asset base of the Group

· Cash of US$1.8 million (H1 2014: US$23.0 million) reflects US$10.7 million of investment in the Group assets in the period

· US$15.0 million revolving loan facility extended until 31 December 2016. Drawn US$8.1 million at period end

Outlook

· Final analysis of Paraguay new seismic to come with preliminary results encouraging

· Focus on plans for increasing production in Argentina and Louisiana, both operations continuing to be cashflow positive at current oil prices

· Farm-out process for Argentina deep gas prospect and similar strategic discussions in Paraguay

· Next phase of Argentine workovers being targeted towards end 2015 with long-lead items now being ordered

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

"President has continued to make solid progress towards achieving its key objectives for 2015, having made further operational success in this reporting period, laying much of the groundwork for progress in the second half of 2015 and beyond."

Argentina

· Average net production for period, pre-workovers 231 bopd (H1 2014: 342 bopd adjusted)

· First phase of workovers of shut-in wells completed on time and budget at end of reporting period

· Current average production some 315 bopd with one producing wells temporarily in maintenance

· Realisation prices averaging US$70 per barrel throughout the year with additional US$3 per barrel increase for new 2015 production

· Post-period new Concession term granted over all producing fields expiring 2050 with successive 10 year extensions thereafter

· Post-period independently audited 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million

· Analysis of Prospective Resources shows significant potential in the deep gas prospect within the Puesto Guardian Concession and the Matorras licence areas

· Next phase of workovers being targeted towards end 2015 with long-lead items now being ordered

· Essential maintenance and upgrading of facilities completed

Paraguay

· Acquisition of 603 km of 2D Seismic completed on time and budget, awaiting final analysis

· Excellent quality seismic data has identified several drillable Paleozoic prospects, in line with the Company's pre-acquisition expectations, at 2,500m - 3,000m depth, approximately 1,000m shallower depth than the Lapacho and Jacaranda wells drilled last year

Louisiana

· Production increased by purchasing minority interests in operated assets and carried wells working interest coming on stream

· Current production of 270 boepd representing a 29% increase from the reporting period average of 209 boepd (H1 2014: 218 boepd)

· Operational cost savings and an extra US$140,000 contribution to facility overheads achieved

· Realisation prices for oil at WTI price without discount

· New well A55 drilled with movable hydrocarbons identified. Well suspended due to unexpected high pressure. Re-entry currently being discussed to be actioned in the medium term

Glossary of Terms

Tcf. Trillion cubic feet (gas)

Bcf. Billion cubic feet ( gas)

MMBtu Million British Thermal Units ( gas)

boepd Barrels of oil equivalent per day

MMbbls Million barrels of oil

bopd Barrels of oil per day

The 2015 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.

Contact:

Chairman's Statement

Summary

The reporting period saw solid progress towards achieving President's key objectives for 2015, both in operational success in the period and laying much of the groundwork for the progress we are now seeing in the second half of 2015. Therefore it is important to view the results not in isolation, but in the context of the achievements that continue to be made.

Whilst President is operating in challenging market conditions which are reflected in these financial results, we have continued to grow the core value of the Company, with both reserves and production increasing.

With a focus on cost discipline, we still have significant potential to grow production from our expanded base of oil reserves to achieve significant growth in shareholder value by progressing our efforts to unlock our exploration assets.

Although it is a challenging time for our industry and we cannot rely on the macro environment improving in the near term, President has a strong underlying asset base which offers compelling upside potential and we therefore remain focussed on exploiting this future growth potential

Argentina

· Average net production for period, pre-workovers 231 bopd (H1 2014: 342 bopd adjusted)

· First phase of workovers of shut-in wells completed on time and budget at end of reporting period

· Current average production some 315 bopd with one producing wells temporarily in maintenance

· Realisation prices averaging US$70 per barrel throughout the year with additional US$3 per barrel increase for new 2015 production

· Post-period new Concession term granted over all producing fields expiring 2050 with successive 10 year extensions thereafter

· Post-period Independently audited 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million

· Analysis of Prospective Resources shows significant potential in the deep gas prospect within the Puesto Guardian Concession and the Matorras licence areas

· Next phase of workovers being targeted towards end 2015 with long-lead items now being ordered

· Essential maintenance and upgrading of facilities completed

Paraguay

· Acquisition of 603 km of 2D Seismic completed on time and budget, awaiting final analysis

· Clear from excellent quality seismic data that several drillable Paleozoic prospects, in line with the Company's pre-acquisition expectations, at 2,500-3,000m depth being some 1,000m shallower depth than the Lapacho and Jacaranda wells drilled last year

Louisiana

· Production increased by purchasing minority interests in operated assets and carried wells working interest coming on stream

· Current production of 270 boepd representing a 29% increase from the reporting period average of 209 boepd (H1 2014: 218 boepd)

· Operational cost savings and an extra US$140,000 contribution to facility overheads achieved

· Realisation prices for oil at WTI price without discount

· New well A55 drilled with movable hydrocarbons identified. Well suspended due to unexpected high pressure. Re-entry currently being discussed to be actioned in the medium term

Australia

· PEL 82 Block is still being retained by the Company and remains under review with actions suspended due to the current market conditions

Financials

· Revenues of US$4.5 million (H1 2014: US$5.8 million), impacted by declining global oil prices. Average realised prices US$52 per barrel in USA (H1 2014: US$102 per barrel) and US$70 per barrel in Argentina (H1 2014: US$74 per barrel)

· Cost of Sales of US$5.2 million (H1 2014: US$3.9 million) demonstrates a higher depreciation charge of US$1.8 million (H1 2014: US$1.2 million) which is driven by the increased asset base of the Group with Property Plant & Equipment of US$81.4 million (H1 2014: US$31.2 million)

· Well operating costs of US$3.5 million (H1 2014: US$2.7 million) make up the remaining component of Cost of Sales. The increase against H1 2014 reflects the 100% ownership of Puesto Guardian from July 2014. On a like for like basis the well operating costs in H1 2015 are down 9% against US$3.8 million in H2 2014

· Gross loss of US$0.7 million (H1 2014: US$1.9 milion profit)

· Administrative expenses of US$2.7 million (H1 2014: US$2.7 million) reflect falling staff costs to US$1.9 million (H1 2014: US$2.3 million) and non-cash share based payments of US$0.7 million (H1 2014: US$0.6 million). The full benefit of cost reductions made in H1 2015 are anticipated to be reflected in the full year 2015 results

· Total assets of US$202.7 million (H1 2014: US$162.9 million) reflect the growing South American asset base of the Group

· March 2015 the Company completed a fundraise of US$13.4 million net of expenses (gross US$14.0 million)

· Cash of US$1.8 million (H1 2014: US$23.0 million) reflects US$10.7 million of investment in the Group assets in the period on Hernandarias seismic, remaining Pirity drilling costs and Argentina workovers. Year-end 2014 cash of US$1.5 million

· US$15.0 million revolving loan facility extended until 31 December 2016. Drawn US$8.1 million at period end

Outlook

Like any business we have now to sweat and develop our core producing assets in Argentina and Louisiana and be ever vigilant on cost savings. We are very fortunate to have these valuable and solid assets. However, there is no denying that the material upside offering to shareholders in the Company are the tangible and exciting exploration prospects the Company has in Argentina and Paraguay. These contain real blue sky potential and in parallel with the necessary running of the business to balance the books and generate profits for shareholders, the Company will make every effort to generate real value appreciation even in this difficult time. In light of the current oil market conditions, we believe our assets are in the best possible geographies, Paraguay with no domestic production and an excellent motivating fiscal policy and Argentina where material incentives are offered to create new production and reserves which is reflected in the oil prices currently being obtained. In this context President is indeed living in interesting times and interesting areas and we remain optimistic as to the future.

Peter Levine

Chairman

30th September 2015

Condensed Consolidated Statement of Comprehensive Income

Six months ended 30 June 2015

Condensed Consolidated Statement of Financial Position

As at 30 June 2015

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2015

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2015

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2015

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 2015. The financial information for the year ended 31 December 2014 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 2015 and 30 June 2014 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2014 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 2014, 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 2014.

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

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2015

Continued

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2015

Continued

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2015

Continued