President Energy, the international energy company announces a corporate and commercial update.
Highlights:
• President Argentina credit rating reaffirmed at Investment Grade A -
• Further Argentine bond issue of US$3.585 million at 3.89% p.a. interest rate
• Success for new well PG 13-1 at Puesto Guardian Concession, Argentina
• Argentina new law allowing oil producers to transfer dollar funds abroad under conditions
• Update on annual report and accounts
New Bond Issue
President Argentina has issued a further tranche of US$3.585 million in bonds to the local market to fund further working capital and capital expenditure. The interest rate is 3.89% with a 25-month repayment period and an initial 16 capital repayment month holiday.
In parallel with the issue, Fix SCR, the Argentina affiliate of Fitch, the worldwide credit agency, has re-affirmed the credit rating of President Argentina's bonds at Investment Grade A-.
Puesto Guardian Concession, Salta, Argentina , Update
The new well PG13-1 is now successfully in production and currently producing over 200 bopd. The old well PE-8, which has not flowed oil for many years, has been worked over and is also now in production with a much more modest 10 bopd, but every little helps.
Realised prices for domestic sale of President's Salta crude continue to increase with prices currently US$66 per barrel, an increase of 12% from the start of the year.
New Law
President notes the new decree that has been issued by the Argentine government allowing access for oil and gas companies to the currency markets in order to transfer United States Dollars abroad under certain conditions, including relevant amounts being proportionate to incremental production year on year.
Whilst President welcomes any change of law allowing repatriation monies to the UK , the Company is considering the full terms and conditions relating to this new legislation and will advise the market in due course if, and/or to the extent that, the relaxation covered by this new decree is applicable and can be utilised.
Annual Report and Accounts
The announcement of the Annual Report and Accounts for year-end 2021 will be issued before the end of this month together with an update of current trading with the Annual General Meeting expected to take place in July.
