TIDMPPC
RNS Number : 0026Y
President Energy PLC
10 May 2021
10 May 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations and prices update
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets focused primarily in
South America, provides an operational update with regard to
certain activities in the Rio Negro Province, Argentina and an
update as to the evolution of oil and gas prices in that
country
Highlights
-- New gas well EV-1002 drilled on time and budget with
successful electric log results in line with expectations
-- New gas well LB-1001 placed on production
-- New gas well EV-1001 successfully completed and being tested
with results projected after clean up to be in line with
expectations
-- Oil and gas prices significantly higher than last year
EV-1002
This new gas well at the Estancia Vieja field has been
successfully drilled, logged and cased on time and budget. The
electric logs, reflecting the muds logs while drilling, show
approximately 14m of net pay in the Vaca Muerta and Catriel
formations subject to petro-physical analysis with good porosity of
some 25%. An RFT logging suite (Repeat Formation Test) was also run
and demonstrated original pressure in both Vaca Muerta and Catriel
formations, opening up potential development opportunities in this
formation in the northern fault block of Estancia Vieja.
The results are in line with expectations and after the current
ongoing work at the new well EV-1001 the well will be completed
rigless using the coiled tubing unit. The drilling rig will now be
demobilised back to its base whilst we review the initial test
production and pressure data of these newly drilled wells.
New well LB-1002
This well has now been placed on production and is performing
better than pre-drilling expectations. During the initial period
various choke sizes will be used to ensure optimum production
levels whist minimising the risks of coning. Currently the well is
producing over 48,000 MM(3) /d (1.7 MMsft/d or 282 boepd) with an 8
mm choke from the secondary reservoir the Centenario 5 and 6. The
primary target the Centenario 3 reservoir, has been left for a
future workover after depletion of the currently producing
reservoirs.
New well EV-1001
This new gas well has now been successfully completed and is
currently cleaning up under test with results projected after
testing to be in line with expectations.
Oil and Gas prices update
The average oil prices realised by President for the first five
month of 2021 are running 35% higher than average for the full year
2020.
The average gas prices realised by President for the first five
months of 2021 are running 40% higher than for the same period in
2020. Spot gas as at today of US$5 per MMBtu is 100% higher than at
the same time last year.
With the price volatility, it is worthy of note that the price
President receives for its Salta oil has in May reached parity with
that received for its Rio Negro production, a significant positive
change from that previously.
Peter Levine, Chairman, commented
"This concludes the initial three well drilling programme in Rio
Negro where we now turn to optimising production and making the
most of robust oil and gas prices
"President does not take this continued success for granted. As
I have said, it's the product of hard work and careful planning in
a country still hard hit by the pandemic
"President continues to pursue strategic options for growth
whether in our core business or through our recently formed green
energy businesses. Whilst detailed due diligence is currently being
conducted on a number of prospects, there is nothing concrete that
President is able to announce. Notwithstanding this and for the
avoidance of doubt what we can state is that in respect of the
prospects currently being considered, it is not currently envisaged
that funding by way of equity issuance would be required
"As always, we extend our appreciation and thanks to the Rio
Negro Provincial authorities, and our partner in Rio Negro, the
provincial energy company, Edhipsa
"We expect a continued flow of further announcements both on
operations and on strategic initiatives during the course of this
quarter".
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil and gas equivalent
MMBtu means million standard cubic feet of gas
Mmsft/d means Million standard cubic feet of gas per day
M(3) /d means million of cubic metres of gas per day
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
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, and
Angostura exploration contract, all of which are situated in the
Rio Negro Province 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 capable of
delivering positive cash flows and shareholder returns. With a
strong strategic and institutional base of support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, President Energy gives UK investors access to an
energy 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
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