Q1 Argentina Financial Results
13/05/2022 07:00
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RNS Number : 3646L President Energy PLC 13 May 2022
13 May 2022
PRESIDENT ENERGY PLC
("President" or the "Company")
Q1 Argentina Financial Results
Salta new wells update
Louisiana update
President Energy (AIM: PPC), the international energy company announces key
highlights from the independently reviewed Q1 2022 results from Argentina
Q1 Argentina Financial Results
Pursuant to the Mini-Bond issued last year and announced in November 2021,
President's Argentina subsidiary, President Petroleum S.A ("PPSA") is obliged
to file auditor reviewed results in Argentina for each calendar quarter.
The results of PPSA for the first three months of 2022 have been reviewed by
Crowe, the President Group auditors and are today filed with the relevant
Argentine authorities. The results have been determined under Argentine GAAP
rules. Such filing does not relate to President Group as a whole, only PPSA.
The full Group audited accounts being prepared under IFRS rules for the year
ended 2021 are expected to be published in June. Note the difference in
accounting standards will produce anomalies in the various versions of the
accounts.
The Q1 Argentina Financial Report, converted from Argentine Peso's into United
States Dollars shows inter alia:
· Turnover of US$8.7 million. President is currently projecting
turnover in Argentina for the full year in excess of US$40 million
· The results do not include any beneficial impact from the
successful new wells in Salta. These are expected to positively impact results
from this current Q2 (see below)
· EBITDA* and free cash generation for the quarter of US$4.5
million
· Profit before tax for the first three months of US$5.3 million,
after tax US$4.5 million
· Average oil price received in Rio Negro of US$54 per barrel
which has since the quarter end increased by 8% and is projected to increase
further this year
Salta New Wells
The new well DP2001 has been successfully stimulated as a final part of
pre-production testing and is now on stream to the battery. The initial
results are encouraging with production estimated at approximately 200 bopd
and higher than expected gas which is being used to partially alleviate diesel
use and thereby reduce cost in the facility.
The next well to have its final stimulation is DP2003 where similar results
are projected. The workover rig is completing the new well PG13, with initial
test results as previously stated available at or around end of May.
The old well PE8, is, after a work over, ready to start up again after many
years and is awaiting spare parts for its pump which are expected to be
received by the end of May.
Louisiana update
Production continues to improve. The Triche well seems to have stabilised,
exceeding expectations both as to oil and gas with Triche gross production now
in excess of 300 boepd and the Simmons well steady at 50 bopd.
Peter Levine commented:
"The recent progress in Salta is encouraging with new wells coming on line
step by step. The mission is now to exploit the enlarged well stock including
opportunistic workovers as appropriate, commencing the secondary recovery
capex programme and managing and optimising production and opex.
"The long awaited increasing domestic prices in Argentina and export where
appropriately possible should assist in continuing our positive momentum.
"Daniel Musri, our new CEO, has within the short time he has been with us,
rolled up his sleeves, shown a commitment to detail by spending time in our
fields and is leading by example commanding respect from our teams, partners
and customers alike. A commendable start which bodes well. With the new Salta
wells now coming on stream Daniel's role aligns with President's objectives of
increasing average production and expanding our portfolio of assets.
"We anticipate announcing full year results for the year 2021 in June. Average
Group production figures will be given twice yearly on the issue of half and
full term reports. The announcements to the market of the Quarterly Financial
reports in Argentina will, as today, cover the key financial metrics published
in Argentina".
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil and gas equivalent per day
EBITDA* means in the context of this report alone, earnings before interest
tax depreciation and amortisation and also including income from foreign
exchange operations
M(3) means cubic metres of oil
Contact:
President Energy PLC +44 (0) 207 016 7950
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.
It has also a 27.9% investment interest in Atome Energy PLC a green hydrogen
and ammonia producer whose shares are traded on AIM of the London Stock
Exchange.
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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