14 November 2019
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Expiry of Decree 566 - oil prices return to normal
President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, confirms that Decree 566, limiting realisable prices for oil producers in Argentina has now expired and from today prices have returned to normal.
As referred to in the Company's RNS issued on 28 August 2019, the Government of Argentina issued a time limited Decree number 566 restricting the price of oil obtainable by producers by way of both artificially fixing the Brent reference price and the dollar/peso conversion rate governing payments by offtakers.
This Decree has now expired without at this stage being supplemented or replaced. Accordingly on that basis from today prices receivable by President from its offtakers have normalized and are calculated on the same basis as before the Decree implementation.
This means on such basis an immediate increase of between US$9-10 per barrel in the realisation prices receivable by the Company, representing an increase of approximately 20% from the prices prior to today. On current values this means a current realisation price of approximately US$53 per barrel for President's core Rio Negro production.
Peter Levine, Chairman, commented:
"A return to normal oil pricing is welcome and would start to have positive impact.
"Whilst the incoming government in Argentina, have for understandable reasons yet to provide their vision / action plan for the oil industry, President is cautiously optimistic as to the future oil prices, particularly taking into account the very negative effect Decree 566 had on the industry as a whole and the prevalent generally accepted view by all sides that the health of the oil industry is important to the Argentine economy as a whole as it seeks to stabilise and improve."
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
Whitman Howard (Broker)
Hugh Rich, Grant Barker
+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 currently has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 27 MMboe.
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