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President Energy Plc NEX:PPC.GB NEX Ordinary Share GB00B3DDP128
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  +0.10p +2.53% 4.05p 3.50p 4.50p 3.95p 3.95p 3.95p 0 16:30:10
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President Energy PLC 2019/20 Work Programme

25/03/2019 7:00am

UK Regulatory (RNS & others)


President Energy (NEX:PPC.GB)
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RNS Number : 8036T

President Energy PLC

25 March 2019

25 March 2019

PRESIDENT ENERGY PLC

("President", "the Company" or "the Group")

Rio Negro Province, Argentina

Fully funded US$50 million 2019/2020 Work Programme

15 New wells, some 20 Workovers with pipeline and infrastructure works

Programme set to deliver 50% exit production growth year on year

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in South America, confirms plans for its work programme for 2019/20 at its fields in Rio Negro Province, Argentina (President 90%, Edhipsa 10%).

The estimated cost of the work programme between now and the end of 2020 is approximately US$50 million and is anticipated to be funded from President's existing cash flow without recourse to any additional finance or borrowings ceteris paribus.

Summary Work Programme

2019

-- From now through mid-year an aggregate of at least 10 workovers in Puesto Flores (oil), Estancia Vieja (oil/gas), Puesto Prado (oil) and Las Bases (gas) will be carried out. The rig is currently being mobilised to the first well location

-- By end of May, the renovation and commissioning of the oil treatment plant in Puesto Prado. The commencement of deliveries of oil from the field direct to local refineries will give enhanced margins (current production 150 bopd from this area)

-- From end of May through to November the first phase repair, upgrading and commissioning of the multi-million dollar value gas plant in Las Bases in order for it to have the capacity to handle initially up to 250,000 m(3) of gas of President's own gas per day by end of October. The pipeline is already transporting approximately 20,000 m(3) per day of third party gas for which a tariff is payable to President

-- In any event by mid-year gas flow will commence to the market from the Las Bases and Estancia Vieja fields through temporary facilities

   --      From July through end of the year a target of seven new production/appraisal wells 

-- By end September, the erection and completion of 14 km of new overhead electric lines between Estancia Vieja and Puesto Flores fields and the commissioning of an electricity generation plant to power the latter field from the former's gas and to sell surplus electricity generated to the grid

-- By end October, the commencement of increased volumes of gas flowing through the building, completion and commissioning of a brand new 16 km section of 4" steel pipeline to be laid between Puesto Prado and Las Bases replacing the limited capacity 3" flexible pipeline between those points

-- The commencement of a further workover programme from October, details to be advised once the results of the present campaign are reviewed

   --      The continuation of infrastructure works throughout the year 

2020

-- The drilling on a rolling continuous programme through the year of an aggregate of eight new wells in Las Bases (gas), Puesto Prado (gas/oil), Estancia Vieja (gas) and Puesto Flores (oil). The wells being a combination of development, appraisal and exploration wells

-- Phase Two of the upgrading of the Las Bases gas plant will be completed to increase its capacity to its original design capability of 1 million m(3) of gas

-- An aggregate of at least eight workovers of wells in the various fields in Rio Negro will be carried out

Commentary

1. The above programme, estimated to cost approximately US$50 million between now and the end of 2020 is anticipated to be funded from President's existing cash flow without recourse to additional finance or further borrowing on current market factors remaining broadly the same. Further, by end 2020 the Company's financial borrowings will have reduced by over US$6 million as inter alia bank borrowing facilities are steadily repaid.

2. Whilst modest in comparison to the total capex spend, the proceeds from recent fund raise has performed a very helpful role in enabling President to accelerate this programme as such additional increment gathers operational momentum later in the period.

3. The work now planned will power the significant growth of the Company from its organic assets and is a major step up in activity from that in 2018 when significant progress was achieved in all key performance indicators.

4. In addition to the above programme which relates only to the Company's Rio Negro assets, planning work will continue in parallel for the drilling of up to two development wells in the Puesto Guardian Concession, one exploration well in the Pirity Concession, Paraguay, (President 100%) all targeted for end 2019/early 2020 and up to four exploration wells at Jefferson Island, Louisiana, (President 20% and operator) currently projected to commence by mid 2019. It is anticipated that all such work will likewise be funded from the Company's own resources.

5. The Company is currently targeting 50% exit production growth year on year in each of 2019 and 2020 and will provide updated guidance during Q3 2019 as the work programme develops.

Glossary of terms

M(3) - million cubic metre of gas

Bopd- barrels of oil per day

For further information please contact:

 
 President Energy PLC 
  Peter Levine, Chairman 
  Rob Shepherd, Group FD                    +44 (0) 207 016 7950 
 finnCap (Nominated Advisor) 
  Christopher Raggett, Scott Mathieson      +44 (0) 207 220 0500 
 Panmure Gordon (Joint Broker) 
 Charles Lesser, Dominic Morley           +44 (0) 207 886 2500 
 Whitman Howard (Joint Broker) 
  Hugh Rich, Grant Baker                    +44 (0) 207 659 1234 
 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, Rio Negro Province as well as 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, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors rare access to the Argentinian 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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March 25, 2019 03:00 ET (07:00 GMT)

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