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President Energy PLC - Market Update

RNS Number : 3625N
President Energy PLC
19 May 2020
 

19 May 2020

 

PRESIDENT ENERGY PLC

("President" or the "Company")

 

 Market Update

 

President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update on oil prices in Argentina.

 

The Company's last announcement on 12 March 2020 referred to media reports of the prospect of the Government setting an internal fixed price for the domestic oil market in Argentina in order to protect the strategic domestic hydrocarbon industry.

On 18/19 May 2020, a Government Decree was signed and published inter alia setting a fixed reference price for Argentina standard Medanito crude at US$45 per barrel subject to local usual quality discounts. President's core production from its Neuquen basin assets fall under the Medanito category. The Decree has been issued against the backdrop of a phased and orderly exit from the lockdown in the country with many industries now back at work in many provinces, road traffic materially increasing and demand for hydrocarbons showing increases. 

The Decree stipulated other terms and conditions related to the fixed price including but not limited to:

(i)         the immediate coming into effect of such legislation;

 

(ii)         the term of the relevant price provisions being until either 31 December 2020 or such time as ICE Brent price exceeds a level of US$45 per barrel for more than 10 consecutive days in any period, whichever time shall first occur. In any event the price will be subject to periodic review;

 

(iii)        provisions supporting, subject to demand levels of activity on the part of producers;

 

(iv)        subject to demand mandatory requirements for refiners to pay producers on such fixed price basis and prohibiting refiners from buying crude abroad instead of domestically produced feedstock;

 

(v)        anti-monopoly and restrictive practices provisions

The actions by the Government of Argentina to protect and promote the internal hydrocarbon industry as a whole is welcomed. Out of an abundance of caution, the practical implications of the Decree, its implementation and effect upon President is being considered by the Company and further comment will be made once the effect on the ground becomes clear and demonstrative.

A copy of the Decree in its original Spanish language version is now available on the Company's Web site. An English translation in respect of which no warranty is given as to accuracy is also provided.

 

 

 

 

 Contact:

 President Energy PLC

Peter Levine, Chairman

Rob Shepherd, Group FD

 

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor and Broker)

Christopher RaggettCharlie Beeson

+44 (0) 207 220 0500

 

Tavistock (Financial PR)

Nick ElwesSimon 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 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 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 as well as the international commodity trader and logistics company Trafigura, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors access to the Argentina 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

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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