President Energy PLC Market Update (3625N)
May 19 2020 - 6:46AM
UK Regulatory
TIDMPPC
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 Raggett, Charlie Beeson +44 (0) 207 220 0500
Tavistock (Financial PR)
Nick Elwes, Simon 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 rns@lseg.com or visit www.rns.com.
END
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