PPC.L Regulatory News (PPC)

22 January 2016

PRESIDENT ENERGY PLC

("President" or "the Company")

PARAGUAY UPDATE

President Energy (AIM:PPC), the oil and gas exploration and production company with assets in Argentina and Paraguay, gives the following update relating to its Paraguay assets.

Key Points

· Pirity and Hernandarias Concessions now estimated by President to hold some 3Tcf and 440MMbbls (equivalent to 940 MMboe) of gross mean Prospective Resources in six identified main structures

· At least 23 additional leads in Cretaceous and Palaeozoic plays identified by the new and reprocessed seismic data

· Application made for new licence area and reorganisation of certain of President's other areas of interest

Peter Levine, Chairman, commented:"President is committed to its' Paraguay assets in which the value proposition remains strong and robust. We view our 2016 objective as laying the foundations for a new exploration campaign in Paraguay, subject to the prevailing macro and micro environment.

The revised resource estimates announced today, based on the new and reprocessed seismic data, significantly demonstrates the major opportunity and value proposition in President's assets in the country."

Updated Resource Estimates

Following on from the results of the recent drilling campaign, the availability of new and reprocessed seismic data and further detailed studies, President now estimates that the Pirity and Hernandarias Concessions together hold approximately 3Tcf and 440 MMbbls of gross mean Prospective Resources (2.55 Tcf and 425 MMbbls net to President) in six identified main structures. In addition, the data also shows in excess of 23 leads in Cretaceous and Palaeozoic plays in those Concessions.

The work carried out by President over the last three years has shown its assets to be in a world class exploration area, situated in a low-cost basin, where discoveries can be commercialised expeditiously at premium prices into a domestic market where there is no current local production. In addition there are multiple options for export of oil and gas to adjacent energy hungry countries.

The two major play areas identified in Paraguay are the Southern Flank with Cretaceous light oil potential and the Northern Flank with Palaeozoic gas/oil potential.

The Northern Flank was initially tested through the 2014 drilling campaign which proved the petroleum system and identified moveable oil and gas with rocks similar to that found in producing fields in Bolivia and North West Argentina.

The Southern Flank has been delineated by detailed 3D Seismic and is the direct extension of the Olmeda sub-basin across the border in Argentina in which basin President already operates its five oil fields in the Puesto Guardian Concession, Salta Province, Argentina.

Pirity Concession

(President 100%)

President is pleased to announce that, the Paraguay Ministry of Public Works and Communication, taking into account the material investment made to date in Pirity including the drilling of two deep wells, has granted a 12 month suspension for the time to complete the relevant work programme under the Concession with an option to extend the suspension for a further six months thereafter subject to prevailing circumstances.

The Company is grateful to the Ministry for the suspension and the continued support for President. The outstanding commitment under the presently articulated contractual work programme is in effect to drill one more exploration well which as a result of the 12 month suspension is now to be undertaken by September 2017.

Hernandarias Concession

(President 40% with right to earn further 40%)

In accordance with the Concession's terms, President has relinquished a part of the Hernandarias Concession in the northern part of the original Concession. However President has re-applied for a prospection permit for the previously relinquished area which is now known as the Don Quixote Block and this application is pending approval subject only to obtaining an environmental license which is expected to be available in early course.

The cost to President to earn in the further 40% of the Hernandarias Concession, thus taking the Company's holding to 80%, has now reduced to US$10m from the original figures of US$17m. The work remaining commitment in the Concession is one well to be drilled on or before October 2019.

Pilcomayo

(President 100%)

President has been granted a prospection permit over an area called Pilcomayo which is located between the Pirity and Hernandarias Blocks. On available information the prospectivity of this relatively small area is considered promising.

Demattei

(President 10.125%)

President, after due consideration of the terms of the relevant farm-in agreement, the work programme terms for the Concession and applicable commercial and technical factors, has decided to terminate without liability the farm-in agreement with its former partner Crescent Global Oil S.A, and has therefore transferred operatorship during the balance of the life of the Concession to them. At the present time President retains its earned 10.125% interest in this Concession.

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.

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