President Energy PLC - Group Update
("President" or the "Company")
• Commencement of pipeline gas sales
• Building now starting of the new 16 kilometre pipeline giving increased capacity
• Oil prices in
Pipeline gas deliveries
President is pleased to announce that the Company is now ready to flow gas to market through its own 60 kilometre pipeline from the Company's Estancia Vieja and Las Bases fields ("LB and EV").
The necessary work to achieve this significant milestone, taking some nine months, has entailed major surface work including installing both compressor and dehydration units together with supporting infrastructure and reconstruction works at the Las Bases gas plant.
From Monday, 4 November, 30,000 m3/day (1.06 MMscft/day or 175 boepd) of President's own gas will be piped by this route to market from the LB and EV fields, with the volume currently restricted by a bottleneck in a 16 kilometre stretch of pipeline between Estancia Vieja and Las Bases due to it being a 3" flexible temporary plastic pipe.
Next week work will commence to build the new 6" steel 16 kilometre pipeline to replace this 3" temporary plastic section. This work is due to be completed in January. When finished, the bottleneck will then be removed, gas deliveries will be ramped up and the full potential of Estancia Vieja's gas unlocked as more wells will be opened up on a stage by stage basis.
In the event that the previously announced conditional agreement under which President is to take assignment of the Angostura block is completed, President's pipeline gas sales transported via Las Bases, would increase to 100,000 m3/day (approximately 3.53 MMscft/day or 600 boepd). Subject to provincial consent, it is estimated that the closing date for such conditional agreement will be later this month.
In the announcement of the Interim Accounts on
That announcement stated that net production from
President has already commented on projected average production figures for the full years 2019 and 2020 at the time of release of the half year figures on 30 September, albeit before the entering into the Angostura conditional agreement. The projections for 2020, will be revisited in the New Year.
It was announced last night that oil prices payable to producers were to increase by 5% with effect from today. Industry observers comment that this is sign that the restriction placed on oil prices by the recent Government decree will continue to be lifted in stages with full return to normality on the horizon. This increase and return to norms clearly will have forward looking beneficial impact on President and other producers and is indicative of the importance of the well being of the oil industry to the country.
"The significance of the start of our own gas flowing through the Estancia Vieja and Las Bases pipeline should not be understated as should not the great efforts made by our
"It is an important milestone for any company to both own and operate both it's own gas fields and pipeline delivery network to market giving it a material strategic advantage.
"This is only a start however, with the next stage being the challenge of building of the new 16 kilometre section of pipeline in the space of only three months so that the full potential of the Estancia Vieja can start to be recognised.
"I express my continued gratitude to the Province of
"Finally, it is also pleasing to see the production recovery in
Boepd: barrels of oil equivalent (oil and gas) per day
Bopd: barrels of oil per day
M3: cubic metres of gas
MMscft: million standard cubic feet of gas
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Notes to Editors
The Company has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions,
The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets in
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
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