President Energy PLC President agrees Argentine Commercial Bank Loan (5266X)
November 27 2017 - 2:00AM
UK Regulatory
TIDMPPC
RNS Number : 5266X
President Energy PLC
27 November 2017
27 November 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
President agrees its first Argentine Commercial Bank Loan
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, announces that President Petroleum
S.A. ("PSA"), its Argentine subsidiary, has agreed its first
commercial bank lending arrangements ("the Loan") through the
established Argentinian Banks, BACS Banco de Credito y
Securitizacion S.A and Banco Hipotecario (the "Banks").
The Loan is for the sum of US$8 million and is for a term of 42
months with capital and interest repayable over that time on a
quarterly basis and benefiting from a 6 month initial capital
repayment holiday. The interest rate is 7.5% over Libor, which
compares favourably with the existing IYA shareholder credit line
facilities which attract an interest rate of 10.5%, with the loan
being secured by pledges over the shares of PSA. The Loan monies
are designated in defraying part of the consideration payable for
the recent acquisition made by the Company in the Neuquén Basin
thereby freeing up more of President's other financial resources
and positive cash flow to materially grow its Argentine business as
appropriate.
President is in a strong financial position. The last six weeks
have seen the Company raise over US$21 million in cash via the Loan
and the recent share issuances. These funds augment the existing
substantial credit line from IYA, a company related to Peter
Levine, of which over US$2 million was last week converted to
equity. The Company's cash balances are further bolstered by the
continued positive free cash flows being generated by its
operations.
Peter Levine, Chairman and Chief Executive, commented:
"This is an important step for President in the continued
pursuit of its declared profitable growth strategy and reflects the
Company's increasing reputation and credibility.
"As well as generating immediate cost savings over the current
IYA shareholder credit line facilities and reducing reliance
thereon, it adds an important component to our financial tool kit
for the future expansion of the Company.
"We are particularly grateful for the constructive support given
to us by these two established Argentine financial institutions and
look forward to developing a mutually rewarding relationship with
them."
Contact:
President Energy PLC
Peter Levine, Chairman, Chief
Executive
Bruce Martin, Chief Financial
Officer +44 (0) 207 016 7950
finnCap (Nominated Advisor
& Joint Broker)
Christopher Raggett, Scott
Mathieson, Emily Morris +44 (0) 207 220 0500
BMO Capital Markets (Joint
Broker)
Jeremy Low, Neil Haycock, +44 (0) 207 236
Tom Rider 1010
Camarco Financial PR
Billy Clegg, Georgia Edmonds,
Mercedes Valenzuela-Goldman +44 (0) 203 757 4980
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 currently has independently
assessed 1P reserves in excess of 16 MMboe and 2P reserves of more
than 25 MMboe.
The Company has operated interests in the Puesto Flores and
Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin
of Argentina and in the Puesto Guardian Concession, in the Noroeste
Basin in NW Argentina. The Company is focused on growing production
in the near term in 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.
President Energy's second largest shareholder is the IFC, part
of the World Bank Group and is 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 and an
in-country management team, 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 company news service from the London Stock Exchange
END
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