President Energy Plc (LON:PPTC) is an oil and gas company with a diverse portfolio of operated onshore assets that is focused on growing production in Argentina in the near term. Management is targeting end-2019 production rates of around 5,000boepd from existing assets (from current rates of 2,700boepd), supported by ongoing drilling together with an active operational programme planned for H219. Further growth is expected through acquisitions in Argentina, with the addition of the Puesto Prado and Las Bases concessions adding critical mass in the Rio Negro Province, due by the end of the year. High-potential exploration opportunities are due to be drilled in Argentina and Paraguay in 2019, with farm-out processes underway in both countries.
Low-risk programme to deliver production increase
President operates all its assets, giving it control, and the ability to manage costs and focus on delivery. Recent activity has focused on its Rio Negro Province conventional assets, which provide the highest-margin production from the portfolio. A programme of 12 workovers in the reactivated Puesto Flores oil field since late 2017 has seen group production increase from 691boepd to 2,700boepd (with c 500bopd from Puesto Guardian in the Noroeste Basin), while the ongoing fully funded three-well drilling programme is forecast to deliver an additional 600bopd. An extensive programme of activity is planned in 2019, comprising production and exploration wells, workovers, reactivations, and facilities and infrastructure work. The Puesto Prado and Las Bases acquisition is close to the existing Rio Negro assets and will provide a pipeline and compression facilities that can unlock gas currently shut-in in Estancia Vieja. The company sees the potential to further expand inorganically through several avenues in Argentina: majors refocusing on unconventional assets, family businesses with limited access to capital and through direct negotiations with the Provinces.
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