President Energy operational update

President Energy release

President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in South America, provides an operational update 

Highlights

·      New well LB-1002, Las Bases field, Rio Negro, Argentina projected to spud later today in line with expectations

·      All previously announced drilling schedules in Rio Negro are on track

·      The new oil treatment plant due to start operations on schedule by end of June and is on budget

·      In Salta, Argentina, advanced discussions are in progress re commissioning the 3D seismic for Canada Grande and Puesto Guardian with green lighting projected by end April

·      Salta drilling discussions and preparations ongoing. Still projected to commence work during H2 2021

·       Paraguay farm out discussions intensify and is on last leg, with advanced discussions ongoing with the contemplated farminee on well locations, timing and logistics. Signing now projected by both parties at or around end April 

·      Atome multiple project streams in process at varying degrees of maturity 

Drilling programme Rio Negro 

The new well LB-1002 at the Las Bases field, Rio Negro, Argentina is expected to spud later today, on schedule with projected budget and timing in line with pre-drill estimates. 

The follow-on wells in Rio Negro as identified in the Company's previous announcement of 9 March 2021 are also on track to be drilled on schedule. 

In parallel to the drilling programme a workover programme is in progress to remediate certain wells. This is proceeding on schedule. 

Treatment plant 

Engineering works are progressing on schedule and on budget. Commencement of operations is projected by end June in accordance with expectations. 

Salta 

At the Company's Puesto Guardian Concession, Salta Province Argentina, President is in advanced third party discussions with regard to green lighting the 3D seismic acquisition scheduled to start in H2. It is expected a decision will be made as to a contractor at or around the end of April with site inspections and surveys having already taken place. As previously announced the 3D survey is expected to indicate new high impact production drilling opportunities in the previously prolific fields of Canada Grande and Puesto Guardian within the larger concession. The seismic will extend in total to over 100 square kilometres. 

Planning is progressing and third party discussions continue to gain traction in relation the contemplated Salta drilling programme projected to commence during H2 2021.

Paraguay farm-in 

It is considered by both President and the contemplated farminee that the negotiations are on the last leg and that signing of both farm-out and operating agreements are now mutually projected to take place at or around end April. The agreements will be conditional agreements that will be subject to consent of the relevant Ministry. Whilst this may be a matter of time, ultimately, taking into account the identity of the party no material issue is contemplated in this regard. 

To expedite matters parties are now engaged in discussions with regard to initial well location, timing and logistics. 

President has now a high degree of confidence that the farm-in will proceed, with drilling to take place in 2022. Currently Paraguay is in the midst of a major and savage Covid-19 crisis with all critical care beds full and this will be an important factor in timing and logistics taking into account all services need to be brought into the country. Accordingly 2022 has to be realistically the year for drilling. 

Atome 

This is very much a live project and multiple work streams are on going with regard to various leads and are at various stages of maturity, in some instances non-disclosure agreements have been executed and information exchanged. Further updates will be given as appropriate. 

Peter Levine, Chairman, commented 

"I do not have a soapbox but given recent personal experience felt that the observations below are necessary. I trust that readers will appreciate the sincerity of the message I give. 

"Covid-19 is a human tragedy the world over and I am aware that the UK has not been insulated from the troubles associated with it. The loss of life is tragic. However, with over 30 million vaccines now administered in the UK and the economy reopening problems that continue in other parts of the world can seem distant. In South America and beyond the fight is far from over. 

"I have spent the last two months travelling around our operations in South America overseeing our exciting work programme and advancing a material investment in our Paraguay assets. During that time I have seen first hand the devastation wrought by the global pandemic and the significant sacrifices required to keep businesses operational during such difficult times. Having myself been hospitalised for two weeks, although thankfully now well on the way to recovery, I am grateful for the skill and dedication shown by the medical professionals in Paraguay and across the globe. 

"I have never been one to sit behind a desk to manage my business and am willing to put myself in harm's way for the benefit of our stakeholders so say none of this to gain sympathy. I make these observations so that people might understand the dedication shown by our hardworking employees in the face of such adversity. It is this dedication that has led to us delivering all of the progress noted in this and previous announcements. It is progress that seems to go unnoticed.

"Well, not to me. So, I take this opportunity to say a public "thank you" to each and every one of our people and contractors in the field and at home. Your sacrifices should not go unnoticed. 

"I will end this stream of necessary consciousness on the positive note commensurate with our people's commendable work. Day by day our Company gets stronger and we are ready to do all we can to grow President organically and by strategic initiative. I am confident that 2021 will be seen by its end as a year of progress"