PPC.L Regulatory News (PPC)

25 July 2019

PRESIDENT ENERGY PLC

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

New Offtake Arrangements

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, announces the entry into new offtake arrangements with Trafigura Argentina S.A, part of the Trafigura group of companies, the multinational commodity trader.

Under the arrangements, President is selling Trafigura certain of its production from its assets in the Rio Negro Province on certain industry standard terms. Separately, Trafigura has agreed to make an advance to President repayable on commercial terms.

Such arrangements have created the added financial flexibility to pay off the US$3.6 million outstanding balance of the US$4 million high interest debt (12.5% plus 6 months US$ LIBOR per annum) owed to Bank Hipotecario which was taken out at the time of the acquisition of the Las Bases and Puesto Prado assets in late 2018. This now leaves President with only US$4.8 million Bank debt bearing a lower interest rate of 7.5% plus 6 months US$ LIBOR per annum. This amount is scheduled to reduce to US$3.7 million by the end of 2019, and to only US$1.2 million by end 2020 at which time the only other anticipated debt owing by the Group will be such monies as are then outstanding to IYA, a company beneficially owned by Peter Levine. The Bank debt is scheduled to be fully repaid by June the following year.

At the same time President has repaid and retired US$1.5 million of debt bearing an interest rate of 12.5% plus 6 months US$ LIBOR owed to IYA, a Company beneficially owned by Peter Levine.

Peter Levine M.A (Oxon), Chairman commented:

"We are very pleased to engage with Trafigura and view them as an important strategic commercial partner in the future growth of President.

"The retiring of higher cost debt is part of the Company's financial strategy and we are pleased to have been able to progress this in advance of expectations."

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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 currently has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 27 MMboe.

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