President Energy PLC Puesto Prado and Las Bases Concessions Update (4808A)
September 12 2018 - 2:01AM
UK Regulatory
TIDMPPC
RNS Number : 4808A
President Energy PLC
12 September 2018
12 September 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Puesto Prado and Las Bases Concessions, Rio Negro Province,
Argentina
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 following media
reports in Argentina regarding the Puesto Prado and Las Bases
Concessions, Rio Negro Province, Argentina ( "the Concessions")
.
Introduction
Noting such media reports, President confirms that it has made
proposals to the Rio Negro Province for the granting of 10-year
exploitation concessions for each of the Las Bases and Puesto Prado
areas, both of which in the past were operated by amongst others
Chevron Argentina.
The proposals were made in connection with a public national and
international tender process run by the Rio Negro Province.
Subject to the review and final approval of the relevant Rio
Negro Power Authority, given that the proposals made by President
complied with the minimum bonus and work commitments requested by
the Province, it is considered the Concessions are likely to be
granted to President during Q4 2018 with, in such event, President
becoming the operator and 90% holder and it's partner in the Puesto
Flores/Estancia Vieja Concession, the Provincial energy company
Ediphsa, holding 10%.
Puesto Prado
Puesto Prado is interconnected to and borders the north of
President's Estancia Vieja field and covers an area of 57.3 sq km.
It has 23 wells currently shut in of which some 5 are available for
reactivation, with the last recorded production being some 150
bopd. It also incorporates a treatment plant which after repair and
upgrading is considered by President to be able to be able to
process some 600 bopd with the oil evacuated by truck direct from
the field to a local refinery. Currently registered hydrocarbon
reserves at Puesto Prado are not considered material in the context
of President's existing reserve base.
Las Bases
Las Bases, some 15 km to the north of and interconnected to
Puesto Prado, covers 153 sq km, is a gas field comprising of 5
wells all shut in, with a compression plant originally built by
Chevron Argentina. Currently out of commission and needing repair
to place back into service, the plant was handling at one stage
some 35 MMscf per day of gas from three/four gas wells operating in
the Concession. As with Puesto Prado, the presently registered
hydrocarbon reserves are not considered material.
Gas Pipelines of the Concessions
Las Bases benefits from its own 38km 8" diameter steel gas
pipeline running from the Concession to own tie-in to the regional
gas transport pipeline allowing gas to be transported and sold to
market. President's Estancia Vieja field is already connected in to
this pipeline as Puesto Prado has the benefit of its own gas
pipeline running from Estancia Vieja through Puesto Prado to link
in with the Las Bases pipeline. The part of the line between Puesto
Prado and Las Bases is currently a 3" diameter flexible pipe with
the part running from Estancia Vieja to Puesto Prado 3" diameter
steel. There is also an oil pipeline running between from Estancia
Vieja to Puesto Prado.
General comments
President's reasoning in making the proposals is that the
Concessions would further expand its critical mass in the Rio Negro
Province, giving economies of scale and synergies, production
upside with sub-surface potential and pipeline infrastructure
providing a route to market for President's gas.
Whilst concrete terms cannot be disclosed until formal approvals
and consents are obtained, subject thereto, President confirms that
the figures quoted in the media of an aggregate bonus of US$9.9
million proposed to be paid by President to the Rio Negro Province
in respect of the Concessions is correct. In this regard, President
being in a strong financial cash generative position has various
options to finance this amount at the relevant time.
A regional map showing the location of the Concessions will be
posted on President's web site, www.presidentenergypc.com
Contact:
President Energy PLC
Peter Levine, Chairman, Chief Executive
Rob Shepherd, Group FD +44 (0) 207 016 7950
finnCap (Nominated Advisor & Joint
Broker)
Christopher Raggett, Scott Mathieson,
Andrew Burdis +44 (0) 207 220 0573
BMO Capital Markets (Joint Broker)
Jeremy Low, Tom Rider +44 (0) 207 236 1010
Camarco Financial PR
Billy Clegg, Owen Roberts, Violet
Wilson +44 (0) 203 757 4980
Glossary
Bopd-barrels of oil per day
MMscf means million standard cubic feet of gas
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 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 third 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 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 rns@lseg.com or visit www.rns.com.
END
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