TIDMPPC
RNS Number : 4757H
President Energy PLC
04 August 2021
4 August 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations update
Rio Negro oil treatment plant fully commissioned
Salta Drilling on track for October start
Paraguay Farm-Out approval process progresses
Atome listing preparation advances
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 as well as the
contemplated listing of Atome on the London Stock Exchange.
Highlights
-- The new oil treatment plant at the Puesto Flores field, Rio
Negro, Argentina is fully operational with savings in line with
expectations at approximately US$4 per barrel
-- At Puesto Guardian, Salta Province, Argentina drilling programme to start October
-- Targeted initial projected new oil production of 120 M(3) /d with no material increases in infrastructure or opex costs giving significant benefit to bottom line
-- Reprocessing of 202 km(2) 3D seismic at the Pozo Escondido
field, Puesto Guardian Concession, Salta now in progress with
results expected in November in time for any follow on drilling
that may be identified
-- Paraguay farm-out on track to receive regulatory approvals by end of the current quarter
-- Atome spin off and listing on the standard list of the London
Stock Exchange on track for later this year
Peter Levine, Chairman, commented
"We have much to look forward to in the coming months with at
least three distinct initiatives, Salta, Paraguay and Atome that
could each have a material impact on the Group
"The market can expect an increasing level of newsflow as we
move towards the final part of the year".
Oil treatment plant
The new oil treatment plant at Puesto Flores Field, Rio Negro
Province, Argentina, is fully operational with cost savings
currently as envisaged at US$4 per barrel.
Salta Province, Argentina
The first of the three new vertical oil wells to be drilled at
the Dos Puntitas field, Puesto Guardian, Salta Province is on track
to spud in the first two weeks of October, with wells two and three
being drilled back to back thereafter in Q4 2021.
Each new well will have a target depth of 3,300 metres, an
estimated drilling time of 28 days, cost of US$3.5 million
including 10% contingency and projected mid-case initial production
of 40 M(3) /d of oil. Due to the low additional opex and
infrastructure expenses with the fixed base costs already covered
by existing production and at current prices in Salta in excess of
US$50 per barrel these wells on success would provide a significant
benefit to the Company's bottom line.
All three wells are due to be completed and in commission for
January 2022 with the first two planned to commence production
before the year end. The wells will be named DP-2001 through to
DP-2003.
The reprocessing of the old 202 km(2) 3D seismic acquired over
the Pozo Escondido field at Puesto Guardian has commenced with
first results due in November. Any prospects highlighted from this
work will be considered to be drilled in 2022 as an add-on to the
current three well programme as stated previously the new 3D
seismic is now slated to commence March/April 2022.
Paraguay farmout
The previously announced regulatory approval process in relation
to the farm out of Pirity Concession is progressing positively and
is on track to be satisfactorily dealt with by end September 2021
on which basis completion of the farm-out should take place before
or during October.
Atome
The green hydrogen and ammonia business projects of President
carried on by its subsidiary Atome Limited continue to make
constructive progress. The spin off and listing of Atome on the
standard list of the London Stock Exchange is on track for later
this year.
Glossary
M(3) /d means cubic metres of oil per day being some 6.3 barrels
of oil per cubic metre
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
Strand Hanson (Financial Advisor
to Atome) +44 (0) 207 220 0500
Simon Raggett
Blytheweigh (Public Relations to +44 (0) 20 7409 3494
Atome)
Tim Blythe, Alice McLaren, Madeleine
Gordon-Foxwell + 44 (0) 755 499 7357
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.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
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END
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