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14 Dec 2015 07:00
14 December 2015
PRESIDENT ENERGY PLC
("President" or "the Company")
OPERATIONAL UPDATE and BOARD CHANGES
President Energy (AIM:PPC), the oil and gas exploration and production company with assets in Argentina and Paraguay, gives the following updates on operational and corporate matters.
Argentine Update
· Workovers ongoing but initial results encouraging
· New daily Company production record
· Continuing strong oil price environment in Argentina
· Full workover results anticipated in mid-January 2016
The two workovers planned for the period to the end of the year are proceeding on plan and on budget.
Notwithstanding that the operations are still in progress, the results so far are very encouraging. Production during well testing at intermediate steps in the workover and stimulation programs achieved an initial two-day rate of 175 bopd, substantially in excess of expectations, giving a new daily Company production record of in excess of 700 boe (Argentina and Louisiana).
In Argentina President continues to benefit from sales prices of over US$70 per barrel of oil.
With one of the workover wells, DP10, only currently allocated contingent resources, with continued production we expect to be able to reclassify some contingent resources to reserves, adding to our current 18.1mmbbls 2P reserve number. The workover and stimulation operations are continuing and both wells will be put back on-stream again upon completion of the works in the coming week.
A further announcement will be made at or before mid-January 2016 when the full workover and stimulation programme has been completed and both the DP10 and DP12 wells have had a lengthy period of production.
Board Changes
At the end of the year both David Jenkins and David Wake-Walker are retiring as non-executive directors. The Company wishes to extend their sincere appreciation to them both for their wise counsel and valued support over the past years and wish them well in the future.
In the current environment the Company will not be taking any immediate steps to appoint new non-executives to replace those outgoing but will consider appropriate candidates in due course. Rob Shepherd will become the senior non-executive director.
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.
Contact:
President Energy PLC
Peter Levine, Chairman +44 (0) 207 016 7950
Miles Biggins, COO +44 (0) 207 016 7950
Ben Wilkinson, Finance Director +44 (0) 207 016 7950
RBC Capital Markets
Matthew Coakes, Daniel Conti +44 (0) 207 653 4000
Peel Hunt LLP
Richard Crichton, Ross Allister +44 (0) 207 418 8900
Bell Pottinger
Gavin Davis, Henry Lerwill and Charles Stewart +44 (0) 203 772 2500
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