President Energy, the international energy company announces key highlights from the independently reviewed Q1 2022 results from Argentina
Q1 Argentina Financial Results
Pursuant to the Mini-Bond issued last year and announced in November 2021 , President's Argentina subsidiary, President Petroleum S.A ("PPSA") is obliged to file auditor reviewed results in Argentina for each calendar quarter.
The results of PPSA for the first three months of 2022 have been reviewed by Crowe , the President Group auditors and are today filed with the relevant Argentine authorities. The results have been determined under Argentine GAAP rules. Such filing does not relate to President Group as a whole, only PPSA. The full Group audited accounts being prepared under IFRS rules for the year ended 2021 are expected to be published in June. Note the difference in accounting standards will produce anomalies in the various versions of the accounts.
The Q1 Argentina Financial Report, converted from Argentine Peso's into United States Dollars shows inter alia:
· Turnover of US$8.7 million . President is currently projecting turnover in Argentina for the full year in excess of US$40 million
· The results do not include any beneficial impact from the successful new wells in Salta. These are expected to positively impact results from this current Q2 (see below)
· EBITDA* and free cash generation for the quarter of US$4.5 million
· Profit before tax for the first three months of US$5.3 million , after tax US$4.5 million
· Average oil price received in Rio Negro of US$54 per barrel which has since the quarter end increased by 8% and is projected to increase further this year
Salta New Wells
The new well DP2001 has been successfully stimulated as a final part of pre-production testing and is now on stream to the battery. The initial results are encouraging with production estimated at approximately 200 bopd and higher than expected gas which is being used to partially alleviate diesel use and thereby reduce cost in the facility.
The next well to have its final stimulation is DP2003 where similar results are projected. The workover rig is completing the new well PG13, with initial test results as previously stated available at or around end of May.
The old well PE8, is, after a work over, ready to start up again after many years and is awaiting spare parts for its pump which are expected to be received by the end of May.
Louisiana update
Production continues to improve. The Triche well seems to have stabilised, exceeding expectations both as to oil and gas with Triche gross production now in excess of 300 boepd and the Simmons well steady at 50 bopd.
Peter Levine commented:
"The recent progress in Salta is encouraging with new wells coming on line step by step. The mission is now to exploit the enlarged well stock including opportunistic workovers as appropriate, commencing the secondary recovery capex programme and managing and optimising production and opex.
"The long awaited increasing domestic prices in Argentina and export where appropriately possible should assist in continuing our positive momentum.
"Daniel Musri, our new CEO, has within the short time he has been with us, rolled up his sleeves, shown a commitment to detail by spending time in our fields and is leading by example commanding respect from our teams, partners and customers alike. A commendable start which bodes well. With the new Salta wells now coming on stream Daniel's role aligns with President's objectives of increasing average production and expanding our portfolio of assets.
"We anticipate announcing full year results for the year 2021 in June. Average Group production figures will be given twice yearly on the issue of half and full term reports. The announcements to the market of the Quarterly Financial reports in Argentina will, as today, cover the key financial metrics published in Argentina ".
