TIDMPPC
RNS Number : 9926E
President Energy PLC
13 July 2021
13 July 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations update
Rio Negro oil treatment plant begins work
Salta Drilling on track
Paraguay Farm-Out approvals on track
President Energy (AIM: PPC), the energy company with a diverse
portfolio of hydrocarbon production and exploration assets focused
primarily in South America as well as Atome, a new green hydrogen
and ammonia company, provides an operational update in relation to
its oil and gas activities in Argentina and Paraguay.
Highlights
-- New oil treatment plant at the Puesto Flores field, Rio
Negro, Argentina is partially in service with full operational
capacity expected by the end of July, slightly later than
originally forecast due to Covid related delays
-- At Puesto Guardian, Salta Province, Argentina, the first of
the three new firm oil wells is currently expected to be spudded on
time in the first half of October with the second and third wells
to be drilled back to back through Q4 2021
-- Ordering of long lead items and contracting of rig for Salta
in advanced progress in readiness for the spud date of the first
well
-- Reprocessing of 202km(2) 3D seismic at the Pozo Escondido
field, Puesto Guardian Concession, Salta to take place in Q3 2021
with a view to generating new drilling opportunities for Q1
2022
-- Previously announced new 3D seismic of 100km(2) over Canada
Grande now expected to be acquired at end of rainy season at or
around March 2022
-- Paraguay farm-out awaiting regulatory approvals, currently
expected before the end of the current quarter, and in the
meantime, negotiations regarding long lead items and the drilling
rig are in progress with various site visits having taken place
Peter Levine, Chairman, commented
"Given the circumstances, the actions of President's engineering
team in relation to the new oil treatment plan has been commendable
in the face of the difficulties encountered. The facilities once in
full operation, expected by the end of this month, means that we
own and control the delivery of our oil in Rio Negro with the
concomitant cost savings
"Salta operational planning presses ahead to ensure the new
wells will be drilled on time. Further details on the wells and
expectations will be announced in due course. Paraguay also
progresses in line with expectations and prior announcements
"These operations, the carrying on the core production
businesses in Argentina and America together with the significant
progress on Atome demonstrate the potential of our Group whose
current entire market capitalisation is less than GBP50
million."
Oil Treatment Plant
The development of the new oil treatment plant at Puesto Flores
Field, Rio Negro Province, Argentina, is now in operation and is
expected to be fully commissioned by the end of this month on
budget.
This is notwithstanding various unforeseen difficulties
encountered including issues with Covid affected contractors and
work restrictions, the weather, and corrosion encountered in
certain tanks not shown up by the due diligence surveys previously
made. Despite all of this, President is delivering the cost saving
project with only a short delay and in any event on budget.
In full operation, together with the new water disposal
facilities already in commission, the savings per barrel of oil
from that previously paid to the third party are some US$4 per
barrel. A meaningful addition to the bottom line.
Salta Province, Argentina
The first of the three new oil wells to be drilled at the Dos
Puntitas field, Puesto Guardian, Salta Province is now scheduled to
spud in the first two weeks of October, with wells two and three
being drilled back to back thereafter in Q4 2021.
Advanced discussions are in progress with regard to the drilling
rig and also long lead items with the objective of commencing
drilling operations on time. In this regard, investors are reminded
that both the rig, long lead items and service companies have to
travel some 1,700km from the Neuquén Basin, approximately the
distance from London to Moscow as there is little in the way of oil
services in Salta. In respect to the rig, discussions include
retaining the rig in field so as to make it available for any
drilling in the first part of 2022.
In the light of the time necessary to obtain environmental
consents for the acquisition of 100km(2) of new 3D seismic over the
formerly prolific but currently inactive Canada Grande field, and
local annual rainy season, the commencement of such work has been
pushed back to the end of Q1 2022 so as to avoid delays which may
occur.
After review of the old 202km(2) 3D seismic acquired over the
Pozo Escondido field at Puesto Guardian, it has been decided to
reprocess this data with a view to identifying drillable prospects.
The reprocessing and review are expected to be available in the
first part of Q4 2021 allowing for decisions to be made at that
time regarding further drilling at that field.
Paraguay farmout
The previously announced regulatory approval process necessary
in relation to the farm out of Pirity Concession is progressing
positively and it is targeted that the approval process will be
satisfactorily dealt with by end September 2021.
In the meantime, discussions with long lead item providers as
well as rig contractors are progressing in line with expectations
with a view to drilling in H1 2022 as previously informed to the
market.
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.
Atome is the green hydrogen and ammonia subsidiary of President
Energy PLC with intended operations in the Americas and Europe and
a targeted separate listing on the London Stock Exchange market
later in 2021.
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.
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of article 7 of Regulation 596/2014
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