27 Jul 2020 07:00
27 July 2020
PRESIDENT ENERGY PLC
("President" or the "Company")
President exports oil from Argentina for the first time
Group production guidance for H2
President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in Argentina provides an update on sales of oil from its Rio Negro fields in Argentina and guidance on H2 Average Group production.
Export of Oil
Since commencing production in Argentina, President has sold all its oil exclusively in the country at the prevailing domestic price. Now, for the first time, President is exporting some of its oil.
After receiving regulatory consents, President, with the assistance of Trafigura, will export approximately 18,000 barrels of oil by the end of July, with the balance of the Company's production being sold domestically. The value achieved for the exported quantity is projected to be in line with current ICE Brent pricing less US$6. The domestic price for President's Rio Negro July production is US$ 37.54 per barrel, not yet at the US$45 Government Decree level due to demand side factors in Argentina.
Having navigated regulatory mechanisms in relation to this first pathfinder export load, in the coming months further oil exports are expected to follow, always depending on demand factors, thus providing President with another string to its bow for sales of product to end markets.
Group production guidance
President is currently projecting Group average production for H2 2020 in the range 3,000-3,400 boepd, an increase of approximately 30% over the same period last year. The estimated increases in production from the two workovers scheduled to commence by end of August and two new wells scheduled to commence by end of September will only be felt in the latter part of this half year. Of the Group's average production in H2, it is currently anticipated that oil will compromise some 60% of the total.
Glossary
Boepd means barrels of oil equivalent
Contact:
President Energy PLC Peter Levine, Chairman Rob Shepherd, Group FD Nikita Levine, Investor Relations
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+44 (0) 207 016 7950
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finnCap (Nominated Advisor) Christopher Raggett, Charlie Beeson | +44 (0) 207 220 0500 |
Shore Capital (Corporate Broker) Jerry Keen, Antonio Bossi
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+44 (0) 207 408 4090 |
Tavistock (Financial PR) Nick Elwes, Simon Hudson | +44 (0) 207 920 3150 |
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.
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 as well as the international commodity trader and logistics company Trafigura, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors access to the Argentina 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