President Energy PLC Operational Update (6383W)
November 16 2017 - 2:00AM
UK Regulatory
TIDMPPC
RNS Number : 6383W
President Energy PLC
16 November 2017
16 November 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Operational update at Puesto Flores, Rio Negro Province,
Argentina
In excess of US$3 million net cash oil receipts in November from
Argentina production
Workover programme commences and is increased to four firm
wells
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, provides an update on its
operations at its Puesto Flores Field, Rio Negro Province,
Argentina.
Highlights:
-- The Company is expected to receive in November over US$3
million net cash proceeds from its Argentine oil sales
-- Fully funded workover programme at Puesto Flores Field
commences and is increased to four firm wells
-- Further wells to be considered next year
-- Pay-back of the US$2.2 million capex, projected to be less
than 12 months at the conservative October oil price level of US$55
per barrel oil
Peter Levine, Chairman and Chief Executive, commented:
"With record net cash proceeds from Argentine sales receivable
in November and the commencement of an increased firm workover
programme at Puesto Flores Field, we are looking ahead and focused
on continuing the trajectory of profitable growth in the new year
whilst maintaining the core emphasis on margins."
US$3 million net cash oil receipts
The Company is to receive in November over US$3 million net cash
proceeds from its oil sales after deduction of sales tax payable.
The expected receipts relate to oil produced partly in October and
partly in the current month from President's Argentine Fields. The
proceeds do not correlate to daily production for a month as not
all production generated on a daily basis is sold within that month
with oil being held in tanks, being treated or in process of
transport through long pipelines. The receivables from the
Company's profitable cash generative production interests in
Louisiana are in addition to the above.
Workover programme commences
The Company previously announced a three firm well workover
programme expected to commence this month. After a satisfactory rig
inspection, this work is now commencing and has been extended to an
initial four firm (definite) wells with further possible contingent
wells next year as may be deemed appropriate after results of the
initial programme are considered.
All of the four firm wells are currently shut-in and the
objective is to place them back into production, generating oil
from the intervals originally perforated when the wells first came
into production. In addition, in three of the wells, a series of
previously un-drained intervals interpreted from the original
drilling logs as oil bearing will be perforated and if successful
will be produced in parallel. The total firm programme is expected
to cost approximately US$2.2 million and will be funded out of
President's existing resources. Pay-back, ignoring any incremental
production from new intervals, is projected to be less than 12
months at the October level of US$55 per barrel oil.
Each of the wells have individual downhole electrical
submersible pumps run through mains electricity and are already
connected with the Puesto Flores battery meaning there will be no
delay on placing each on production as and when work on each such
well is completed. Taking into account the additional firm well,
the commenced programme is expected to extend through January 2018
and President will report to shareholders on progress at
appropriate times during the course of the work.
In line with President's policy to retain local Rio Negro
Province contractors and workforce wherever practical, the rig to
be used in the programme has been provided by Tacker, a
well-regarded local services company.
Contact:
President Energy PLC
Peter Levine, Chairman, Chief
Executive
Bruce Martin, Chief Financial
Officer +44 (0) 207 016 7950
finnCap (Nominated Advisor
& Joint Broker)
Christopher Raggett, Scott
Mathieson, Emily Morris +44 (0) 207 220 0500
BMO Capital Markets (Joint
Broker)
Jeremy Low, Neil Haycock,
Tom Rider +44 (0) 207 236 1010
Camarco Financial PR
Billy Clegg, Georgia Edmonds,
Mercedes Valenzuela-Goldman +44 (0) 203 757 4980
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 16 MMboe and 2P reserves of more
than 25 MMboe.
The Company has operated interests in the Puesto Flores and
Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin
of Argentina and in the Puesto Guardian Concession, in the Noroeste
Basin in NW Argentina. The Company is focused on growing production
in the near term in 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.
President Energy's second largest shareholder is the IFC, part
of the World Bank Group and is 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 and an
in-country management team, 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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