2021 Key Trading Highlights
14/02/2022 06:59
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RNS Number : 5116B President Energy PLC 14 February 2022
14 February 2022
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
2021 Unaudited Key Trading Highlights
New Argentine Reserves Report as at 31 December 2021
President Energy (AIM: PPC), the energy company with a diverse portfolio of
production and exploration energy assets currently focused primarily in South
America, announces unaudited 2021 trading highlights together with an updated
Argentine reserves report as at 31 December 2021.
2021 Unaudited Trading Highlights
· Turnover of approximately US$34.2 million, without any
consistent contribution from the Louisiana assets
· Average Group production of 2,473 boepd (2020: 2,714 boepd) with
no material contribution from Louisiana
· Estimated adjusted EBITDA in Argentina of US$9.5 million
(calculated on the basis of Group financial reporting)
· US$14.5 million of free cash generation from operations (after
workovers) and treasury income
· Group results are expected to include a benefit of US$13 million
to the profit and loss account arising from the spin out of Atome Energy PLC
and dividend distribution to shareholders of President which represented a
yield of approximately 20 per cent
· The Company retains a 27.9% holding in Atome Energy PLC which at
31 December had a market value of US$9.8 million
Argentine Reserves as at 31 December 2021
· President's 2P reserves in Argentina as at the year end have been
assessed at a robust 24.4 MMboe
· Argentina reserves and contingent resources have been
independently certified according to Argentinian Law as at 31 December 2021,
after taking into account production in the year
· Group net 2P Reserves of over 24 MMboe limited to current life
remaining of concessions taking no account of any future extension of such
contracts
· Significant contingent resources in producing areas awaiting
conversion to reserves after contract terms are prolonged
· The reserves reported exclude the internally estimated Paraguay
exploration PMean of 536 MMbo unrisked oil-in-place that are in addition to
the figures reported today; drilling of a complex estimated to contain 230
MMbo of that total will be undertaken in 2022 in a joint venture with CPC, the
state energy company of Taiwan.
YE2021 Reserves YE2020 Reserves
(MMboe) (MMboe)
1P 2P 3P 1P 2P 3P
Puesto Guardian, Salta 6.2 11.7 19.4 5.7 12.7 20.8
Rio Negro, Neuquen Basin 7.3 12.7 15.3 7.6 10.9 13.2
Total Argentina 13.5 24.4 34.7 13.3 23.6 34.0
Peter Levine, Chairman, commented
"Whilst trading in 2021 was solid, despite the static production taking into
account the loss in all material respects of Louisiana's contribution in the
year, we still showed a healthy, operationally profitable business
"On a strategic level, we produced material returns for our shareholders
through the spin out and IPO of Atome Energy and successfully, notwithstanding
the pandemic, farmed out our Paraguay exploration prospect to the state energy
company of Taiwan
"It is important to ensure that going forward we leave no stone unturned to
achieve optimum performance and delivery for our capital expenditure
"With one new well in Salta on stream and still stabilising, the second to be
online at the end of this week and the third to be drilled this month, Salta
commercial oil production is already increasing and is expected to continue as
the other new wells come on. The waterflood secondary recovery project in Rio
Negro scheduled to start within 6 months is very promising for both
stabilising natural decline and increasing the amount of recoverable oil. Work
is progressing to prepare for the high impact exploration well in Paraguay to
be drilled this year targeting, based on internal estimates, 230 million
barrels of unrisked oil in place
"We therefore look forward to an improved performance this year with regular
newsflow keeping the market updated".
Glossary:
1P means proven reserves
2P means proven and probable reserves
3P means proven, probable and possible reserves
Adjusted EBITDA is Earnings before interest, tax, depreciation, amortisation
and impairment
Law means sections 35 and 58bis of the Argentine Hydrocarbons Law 17,319 (as
amended by Law 27,007)
MMboe means million barrels of oil and oil equivalent (gas)
Oil in place means the total content of a potential oil reservoir
Pmean means the expected average value of all possible outcomes
Contact:
President Energy PLC +44 (0) 207 016 7950
Rob Shepherd, Group FD
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker) +44 (0) 207 220 0500
Christopher Raggett, Tim Harper
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 Río 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.
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 UK investors access to an energy growth story combined with
world class standards of corporate governance, environmental and social
responsibility.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue
of the European Union (Withdrawal) Act 2018 ("UK MAR"). The person who
arranged for the release of this announcement on behalf of the Company
was Peter Levine, Chairman.
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