18 Nov 2016 07:00
Friday 18 November 2016
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy" and, together with its subsidiaries, the "Group")
Statement regarding press speculation
President Energy (AIM:PPC), the oil and gas exploration company, notes recent industry speculation regarding the price that oil producers in Argentina will receive for their production.
The Company can confirm that under existing arrangements it expects to receive approximately $55 per barrel for its production until the end of the year. The Argentinian Government's intention to match local and international pricing has been in the public domain for some time, and, whilst it is quite probable that this will be in 2017, at the present time exact timings for this transition remain unclear though this could commence in the first part of 2017.
Using the Brent forward curve from 1 January 2017, President anticipates that the IRR of its planned well workover campaign in 2017 will not be materially impacted and is estimated to be approximately 150 per cent.
The Company therefore expects there to be no material difference in its anticipated year-end 2017 cash position.
The Company will continue to update the market on any material developments.
This announcement is inside information for the purposes of article 7 of Regulation 596/2014
Contact:
President Energy PLC |
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Peter Levine, Chairman | +44 (0) 207 016 7950 |
Miles Biggins, COO
| +44 (0) 207 016 7950 |
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Peel Hunt LLP (Nominated Adviser & Joint Broker) |
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Richard Crichton, Ross Allister, Chris Burrows
| +44 (0) 207 418 8900 |
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BMO Capital Markets Limited (Joint Broker) |
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Jeremy Low, Neil Haycock, Tom Rider, Jenny Wyllie
| +44 (0) 207 236 1010 |
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Vigo Communications |
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Chris McMahon, Patrick D'Ancona | +44 (0) 207 830 9700 |