• 1P and 2P Neuquen Basin high value reserves increase by 90% and 40% respectively
• Substantial increase in Group economic value of 2P reserves to nearly US$300 million 

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily South America, announces its new independently certified hydrocarbon reserves report on its assets in Argentina calculated as at 31 December 2018.

Report Highlights

• President's net 1P and 2P reserves in the Neuquén Basin increased over the previous year by 82% and 41% respectively to 8.1MMboe and 11.4MMboe (y/e 2017 4.5MMboe and 8.0MMboe).
• Overall Group net 1P reserves in Argentina increased by 6% to 15.4MMboe (y/e 2017 14.5MMboe).
• The Group's overall net 2P reserves in Argentina show a decrease to 24.9MMboe (y/e 2017 26.5MMboe). The 2P differences are   due to the reserves in the Salta Province being prudently adjusted due to deliberately reduced capex activity as the Company focused on the higher value, value added Rio Negro fields. 
• President's net Argentina 3P reserves increased by 14% to 30.5MMboe (y/e 2017 26.8MMboe)
• The Neuquen Basin 1P and 2P reserves comprise 81% oil with the balance being gas but with gas representing only some 3% of President's current production. Only a limited amount of reserves are currently attributed to the Las Bases and Puesto Prado Concessions acquired in December 2018. The reserves in these areas are expected to grow in 2019 as President implements its capex plans and, inter alia, significantly increases gas production.
• The beneficial effect of such emphasis is demonstrated by the NPV10 value of President's net 1P and 2P Neuquen Basin reserves increasing by 44% and 22%  respectively to US$133 million and US$192 million (y/e 2017 US$92million and US$158 million), the Group's entire Argentina 2P reserves NPV 10 value increasing by 15% to US$291 million (y/e 2017 US$253 million) and the  3P Argentina reserves value increasing by 40% to US361 million (y/w 2017 US$258 million). 
• Combined with Management estimates of value for Louisiana reserves, the Group's net 2P reserves value calculated on an NPV10 basis  ignoring all exploration resources is now nearly US$300 million as at 31 December 2018, representing an approximate 200% premium to the Company's total enterprise value taking into account its current market capitalisation and total gross debt of approximately US$30 million. 

 
Peter Levine, Chairman and Group CEO commented:
"The increases in key producing reserves and value in the Neuquén Basin in Argentina and its higher contribution to entire Group reserves reflect our successful and continued focus on that area. The report and our continued cash generation is a clear vindication of our philosophy of value over volume underpinned by the success of President's acquisitions policy in the last 18 months and our concentration on margins.

"Accordingly, we remain focused on materially increasing profitable hydrocarbon production combined with reserves growth.

"With the benefit of the latest acquisitions made in December, including the strategic gas pipeline and infrastructure, we are working diligently towards significantly growing our gas production this year as well as oil, thereby providing a more balanced energy portfolio." 

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