President Energy has provided an operational update with regard to certain activities in the Rio Negro Province, Argentina and an update as to the evolution of oil and gas prices in that country

Highlights

• New gas well EV-1002 drilled on time and budget with successful electric log results in line with expectations
• New gas well LB-1001 placed on production
• New gas well EV-1001 successfully completed and being tested with results projected after clean up to be in line with expectations
• Oil and gas prices significantly higher than last year

New well LB-1002

This well has now been placed on production and is performing better than pre-drilling expectations. During the initial period various choke sizes will be used to ensure optimum production levels whist minimising the risks of coning. Currently the well is producing over 48,000 MM3/d (1.7 MMsft/d or 282 boepd) with an 8 mm choke from the secondary reservoir the Centenario 5 and 6. The primary target the Centenario 3 reservoir, has been left for a future workover after depletion of the currently producing reservoirs.

New well EV-1001

This new gas well has now been successfully completed and is currently cleaning up under test with results projected after testing to be in line with expectations.

Oil and Gas prices update

The average oil prices realised by President for the first five month of 2021 are running 35% higher than average for the full year 2020.

The average gas prices realised by President for the first five months of 2021 are running 40% higher than for the same period in 2020. Spot gas as at today of US$5 per MMBtu is 100% higher than at the same time last year.

With the price volatility, it is worthy of note that the price President receives for its Salta oil has in May reached parity with that received for its Rio Negro production, a significant positive change from that previously.

Peter Levine, Chairman, commented
"This concludes the initial three well drilling programme in Rio Negro where we now turn to optimising production and making the most of robust oil and gas prices

"President does not take this continued success for granted. As I have said, it's the product of hard work and careful planning in a country still hard hit by the pandemic

"President continues to pursue strategic options for growth whether in our core business or through our recently formed green energy businesses. Whilst detailed due diligence is currently being conducted on a number of prospects, there is nothing concrete that President is able to announce. Notwithstanding this and for the avoidance of doubt what we can state is that in respect of the prospects currently being considered, it is not currently envisaged that funding by way of equity issuance would be required

"As always, we extend our appreciation and thanks to the Rio Negro Provincial authorities, and our partner in Rio Negro, the provincial energy company, Edhipsa

"We expect a continued flow of further announcements both on operations and on strategic initiatives during the course of this quarter".

KeyFacts Energy: President Energy Argentina country profile