President Energy PLC - Operation and Production Update
PRESIDENT ENERGY PLC
("President" or the "Company")
Operation and production update
Production hits 4,000 boepd
Investor conference call scheduled
President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets, announces an operations and production update in relation to its activities across the Group.
• Compressor at Las Bases field,
• Newly drilled well LB-1001 at the Las Bases field opened up and producing, new EVN-x1 at the Estancia Vieja field well to follow
• Production in
• Total current instantaneous Group net production estimated at approximately 4,000 boepd
• Current net gas production in
• The Company is currently finalising plans for next year's capital expenditure
• Investor conference call scheduled for 11:00 (GMT) on Tuesday 8th
The new compressor infrastructure at the Las Bases field has been commissioned and is in operation. The compressor enables more gas to be delivered from the Company's Estancia Vieja gas wells. Accordingly, this is the first time four wells in this field have been able to produce together and are now flowing gas to market through President's pipeline infrastructure. The Company has identified potential to drill further wells in that field.
At the same time, the newly drilled LB-1001 (gas) well has been placed on production, with aggregate production from this well is currently ahead of expectation. The recently tested well LB-1, as yet not on stream, will be connected and placed into production before year end. Likewise the new well EVN-x1 is currently off-line having a pump fitted. President will monitor the results from that well in due course with a view to drilling shallow appraisal and production gas wells in the Las Bases field in 2021. Current cost projections per well, including artificial stimulation are around
The production from the Puesto Guardian concession in Salta is stable. As previously announced, President is progressing with planning and a feasibility study with a view to drilling 2 or 3 vertical development oil wells in 2021 in the Dos Puntitas field, part of the Puesto Guardian concession, and is in the process of applying for the relevant environmental and location permissions. The last vertical well drilled in Dos Puntitas initially produced 250 boepd.
In the light of the overall progress made, operational plans for the next 13 months are now being prepared and will be announced in
Aggregate group net production has now reached 4,000 boepd with virtually an even split between oil and gas.
This is a current daily production rate and demonstrates the level that President, on present evidence, considers the wells can deliver. As such this rate varies day by day as wells go on and off-line. The average rate over time is a more valuable representation of the production and these figure will be published at appropriate times.
Nevertheless the general increase in production, with no material increase in opex, will have a beneficial effect on the costs per barrel and the bottom line of the Company taking into account the base opex cost in the fields has already been largely covered by core production.
President is now considering the most expedient long term production levels for optimum field and reservoir management. Such consideration will, inter alia, take into account the fluctuation between
In relation to prices, the Company notes the recent positive upward movement of both the oil price and
The oil price receivable by President for December production is estimated at more than the
"Steady progress is being achieved but we have the capacity within ourselves to build on this and achieve more. In this regard the announcement today and those made recently demonstrate such capability and underline the potential in our assets which we continue to work hard to realise.
"We look forward to increased activity next year and expect to make an announcement within the next two months regarding future plans and timing".
The Company will be hosting a conference call, focussing on today's announcement, for Investors at 11:00 (GMT) on Tuesday 8th
Conference call dial-in details:
· United Kingdom Toll-Free: 08003589473 PIN: 56808439#
· United Kingdom Toll: +44 3333000804 PIN: 56808439#
Boepd means barrels of oil equivalent (oil and gas) per day
LB means a well in Las Bases field,
M3/d means cubic metres of production of gas or oil as the case may be
MMBtu means Million british thermal units of gas
MMcf/d means Million standard cubic feet per day
P50 means mid-case
President Energy PLC
+44 (0) 207 016 7950
finnCap (Nominated Advisor)
+44 (0) 207 220 0500
Shore Capital (Corporate Broker)
+44 (0) 207 408 4090
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
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
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
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014
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