PPC.L Regulatory News (PPC)

30 July 2014

PRESIDENT ENERGY PLC

("President" or "the Company")

Puesto Guardian Acquisition

Highlights

· Purchase of the 50% of Puesto Guardian Field not owned already by President, together with operatorship

· President's 2P Oil Reserves nearly doubles to a total of 13 mmbbls (as of 31 December 2013)

· Purchase adds production of 150 bopd together with 6.43 mmbbls of 2P reserves* and 285 bcf with 7.25 mmbbls condensate of prospective resources

· Total initial purchase price US$5m with further US$1.88m cash payments over 2 years

· Further royalty based consideration dependent on production over 1,000 bbls/day capped at an additional US$11m

· Waiver of debt due to President of US$1.6m

Puesto Guardian

Puesto Guardian is a 622 sq. km concession located in the Noroeste Basin in North West Argentina. There are five fields in the Concession, where maximum production of 9,000 bopd was reached in the early 1980's. In 2011, President farmed in to 50% of the concession on a non-operated basis. Gross production is currently 300 bopd at a current realised price of US$77.2 per barrel. The concession borders on the Matorras and Ocultar exploration blocks, both currently 100% owned and operated by President.

Puesto Guardian comprises five fields with many shut-in wells. A three well frac campaign of previously shut-in wells demonstrated proof of concept that many historically shut-in wells, properly worked over and hydraulically stimulated could generate an increase in oil production with good payback. President has recently carried out significant geological and geophysical work including reprocessing and re-mapping which has shown encouraging results for potential new reserve bookings.

This work includes the consideration of a deep gas Palaeozoic play in the Martinez del Tineo ("MDT") field at Puesto Guardian where gross best unrisked prospective resources have been independently estimated at 570 bcf and 14.5 mmbbls of condensate. Any discovery of a live petroleum system in the Palaeozoic formation, currently being explored by President's first well in Paraguay, would favourably impact on the risking of the MDT play.

The Terms

President's partner and operator in Puesto Guardian, Tripetrol Petroleum S.A. and Petrolera San Jose S.R.L., are raising finance for their Group's ongoing activities outside of Latin America. As a result, President has been able to expeditiously negotiate and complete the acquisition of the partner's 50% operated position in the Concession on the following terms:

(i) An initial US$5m cash payment on completion. This payment will be met out of President's existing cash facilities.

(ii) A further payment of US$880,000 in cash payable 31 December 2015.

(iii) A further payment of US$1m in cash payable 31 December 2016.

(iv) The waiver of a long outstanding debt of US$1.6m owed to President by the Sellers.

(v) The retention of certain key employees of the Seller to effect a smooth transition at a consulting fee of US$20,000 per month for a six month period.

(vi) A royalty of 5% on proceeds of production (net of taxes, royalties, operating expenses, transportation, treatment and commercial costs) whenever production attains 1,000 bbls/day from Puesto Guardian capped at US$11m thereby giving a total possible consideration of approximately US$20m.

 (vii) Operations are taken over by President and the US$84,000 per month operating fee currently being paid to the Sellers for operating ceases.

Reasons for Acquisition

The purchase, at a modest initial consideration, gives President a positive cash flow contribution together with complete ownership and operational control of Puesto Guardian. Whilst being relatively dormant under the Seller's tenure, Puesto Guardian has good potential for production and reserves growth, and will benefit from President's active control and operation.

Whilst production is at present relatively low, little investment has been made recently due in large part to the ownership structure. Gaining control will enable President to embark in due course on an educated programme of development to prove up and enhance the true value of the field.

President will take the next few months to manage its acquisition and carefully consider its next steps, focussing on minimising costs and maximising profit. A new independent CPR will be commissioned, the results of which will be available before the end of 2014.

Peter Levine, Executive Chairman, commented:

"President has taken the opportunity, unexpectedly presented, to consolidate its Puesto Guardian interest and take full ownership and operatorship. The price and terms of payment reflect good value to shareholders. We now have the control to put us in the best position to unlock the potential of this asset.

We continue to be excited about President's exploration prospects and expect results from the first well in Paraguay, the Jacaranda well, within the next 14 days."

* Internal estimates based on audit previously performed.

Miles Biggins, Bsc Joint Honours University College London, with 22 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

John Hamilton, CEO +44 (0) 207 016 7950

Ben Wilkinson, Finance Director +44 (0) 207 016 7950

RBC Capital Markets

Jeremy Low, Matthew Coakes, Daniel Conti +44 (0) 207 653 4000

Canaccord Genuity Limited

Tim Redfern, Henry Fitzgerald-O'Connor +44 (0) 207 523 8000

Bell Pottinger

Gavin Davis, Henry Lerwill +44 (0) 207 861 3232