President Energy (PPC), the energy company with a diverse portfolio of production and exploration energy assets currently focused primarily in South America, announces unaudited 2021 trading highlights together with an updated Argentine reserves report as at 31 December 2021.
2021 Unaudited Trading Highlights
- Turnover of approximately US$34.2 million, without any consistent contribution from the Louisiana assets
- Average Group production of 2,473 boepd (2020: 2,714 boepd) with no material contribution from Louisiana
- Estimated adjusted EBITDA in Argentina of US$9.5 million (calculated on the basis of Group financial reporting)
- US$14.5 million of free cash generation from operations (after workovers) and treasury income
- Group results are expected to include a benefit of US$13 million to the profit and loss account arising from the spin out of Atome Energy PLC and dividend distribution to shareholders of President which represented a yield of approximately 20 per cent
- The Company retains a 27.9% holding in Atome Energy PLC which at 31 December had a market value of US$9.8 million
Argentine Reserves as at 31 December 2021
- President's 2P reserves in Argentina as at the year end have been assessed at a robust 24.4 MMboe
- Argentina reserves and contingent resources have been independently certified according to Argentinian Law as at 31 December 2021, after taking into account production in the year
- Group net 2P Reserves of over 24 MMboe limited to current life remaining of concessions taking no account of any future extension of such contracts
- Significant contingent resources in producing areas awaiting conversion to reserves after contract terms are prolonged
- The reserves reported exclude the internally estimated Paraguay exploration PMean of 536 MMbo unrisked oil-in-place that are in addition to the figures reported today; drilling of a complex estimated to contain 230 MMbo of that total will be undertaken in 2022 in a joint venture with CPC, the state energy company of Taiwan.
Peter Levine, Chairman, commented
"Whilst trading in 2021 was solid, despite the static production taking into account the loss in all material respects of Louisiana's contribution in the year, we still showed a healthy, operationally profitable business
"On a strategic level, we produced material returns for our shareholders through the spin out and IPO of Atome Energy and successfully, notwithstanding the pandemic, farmed out our Paraguay exploration prospect to the state energy company of Taiwan
"It is important to ensure that going forward we leave no stone unturned to achieve optimum performance and delivery for our capital expenditure
"With one new well in Salta on stream and still stabilising, the second to be online at the end of this week and the third to be drilled this month, Salta commercial oil production is already increasing and is expected to continue as the other new wells come on. The waterflood secondary recovery project in Rio Negro scheduled to start within 6 months is very promising for both stabilising natural decline and increasing the amount of recoverable oil. Work is progressing to prepare for the high impact exploration well in Paraguay to be drilled this year targeting, based on internal estimates, 230 million barrels of unrisked oil in place.
"We therefore look forward to an improved performance this year with regular newsflow keeping the market updated".