TIDMPPC
RNS Number : 4648V
President Energy PLC
03 November 2017
3 November 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Salta Exploration Assets, North West Basin, Argentina
Significant upgrade to Prospective Resources
President Energy Plc (AIM: PPC), the upstream oil and gas
company is pleased to announce the results of a new integrated
basin study and geochemical survey over the exploration assets of
the Company centred on its Puesto Guardian Concession, Matorras and
Ocultar Licenses, which have resulted in significant upgrades to
the Company's Prospective Resources.
Highlights
-- New extensive studies and surveys validate the significant
prospectivity of President's Argentine exploration areas
-- Aggregate Paleozoic gas/condensate prospects net to President
with mean unrisked Prospective Resources ("MUPR") of over 7Tcf with
an upside case of over 20 Tcf and 185 MMbbls Condensate
-- New previously unreported Cretaceous oil prospects of over 40MMbbls MUPR identified
-- President is preparing to launch a farm-out of Matorras and
Ocultar, with engagement of advisors and plans to launch in Q1
2018
Detailed new research has been carried out on an integrated
basin study and geochemical survey, focussed on President's
exploration areas in the Salta Province, Argentina where
President's Puesto Guardian producing Concession and its Matorras
and Ocultar licenses, all 100% owned and operated, are located.
The study was led by Andres Boll, a recognised exploration
expert in the relevant Northwest Basin, who has 35 years of
experience with YPF and Tecpetrol; latterly as Tecpetrol's
Exploration Manager.
The exploration interests of President extend to 2,825 square
kilometres, and benefit from extensive 2D and 3D seismic data
re-processed by President, valuable exploration wells drilled by
YPF in the 1970-80s as well as outcrop surveys commissioned by
President together with the latest studies and geochemical
surveys.
During the last six months, after detailed research, relevant
data was, for the first time, fully integrated and re-interpreted
including a complete reconstruction of the basin to determine
"paleo structures" at the Cretaceous and Paleozoic levels, during
the periods of peak charge and migration, as well as the impact on
structures during the more recent Andean compression. The study
benefitted from the presence of significant remote sensing
geochemical anomalies over the exploration acreage that have been
through an unequivocal and accurate ground truth study over
President's neighbouring producing Argentinian fields.
The results of the study and surveys are summarised below:
-- The three previously reported Paleozoic prospects in Matorras
and beneath the proven Martinez del Tineo ("MDT") oil field, one of
five Cretaceous producing fields in President's Puesto Guardian
Concession, have been rigorously reviewed and updated, with a total
MUPR of over 7Tcf and 185MMbbls Condensate and upside case of over
20Tcf whereby all three prospects lie within the same regional
closure at a depth of 3000-4000m subsea.
-- Five new Cretaceous oil prospects in Mattoras on the same
trend as the producing MDT with total MUPR of 39MMbbls
-- Two new Cretaceous oil prospects in fault blocks representing
a northerly extension of the MDT oil field, with total MUPR of
8MMbbls
-- Four new Cretaceous oil leads of sizes 2.5-10 km(2) in
Ocultar that are 2-10km from the Puesto Climaco oil field, which
has produced 2MMbbls from a 1 km(2) structure
-- The study included a review of the Cretaceous oil reserves in
MDT and confirmed President's existing 5MMbbls 2P Proven plus
Probable Reserves in that field
President is preparing to launch a farm-out of Matorras and
Ocultar, with engagement of advisors and plans to launch in Q1
2018. Given the strong geological basis for including the MDT field
and near-field prospects together with the Matorras and Ocultar
License offerings, the Company is planning to include the MDT
producing field within the package for farm-out if it is expedient
to do so and results in accelerated activity.
Commenting on today's announcement, Peter Levine, Chairman
said:
"President, as a profitable producing company, remains clearly
focused on positive cash flow, profit margins and materially
expanding our production base both organically and by way of
acquisition.
"The significance and large scale of our on-shore, readily
accessible and monetisable Argentine exploration assets combined
with the increasing interest of industry and institutional
investors in Argentina has led us to the conclusion that a fast
track way of exploring the major potential of these prospects by
way of farm-out is an appropriate way to materially and
expeditiously increase shareholder value in relation to these
assets.
"In the meantime the farm-out process of our equally significant
Paraguay exploration assets continues in an encouraging manner with
parties already in the data room."
Miles Biggins, BSc Joint Honours University College London, with
25 years of experience in the oil and gas sector, is a Petroleum
Engineer and member of the Society of Petroleum Engineers who meets
the criteria of qualified persons under the AIM guidance note for
mining and oil and gas companies, has reviewed and approved the
technical information contained in this announcement.
GLOSSARY
MMbbls Millions of barrels of oil
MMboe Millions of barrels of oil equivalent
Tcf Trillion cubic feet of gas
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 0573
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
reputable access to the Argentinian growth story combined with
world class standards of corporate governance, environmental and
social responsibility.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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