President Energy (AIM: PPC), the international energy company provides an update on trading and corporate matters.
Argentina
The three new wells at the Puesto Guardian Concession, Salta Province, Argentina are all on stream and each producing in the range of 125-185 barrels of oil per day. In addition, intervention work is being made on older wells at the Concession to enhance production.
Trading overall in Argentina remains operationally profitable with President generating good free cash flow and exporting oil to the extent possible and appropriate. Domestic oil prices continue to increase with oil prices being in our core Neuquen Basin area presently some $67 per barrel and progressively increasing step by step. The price invoiced by the Company for the export cargo sold in July was US$105.8 per barrel.
Being a US Dollar based business insulates President to a material degree from the high inflation unfortunately suffered in Argentina at present and careful management of Peso balances is being exercised to mitigate exposure.
Louisiana
To maintain and enhance production in Louisiana a gas lift system is currently being installed and implemented with wells expected to be fully operational again in August.
Non-Executive Director
Martin Urdapilleta, Non-Executive Director, retired at the Annual General Meeting of the Company held on 22 July 2022 in accordance with Article 110 of the Company's Articles of Association. Owing to increased business commitments within South America for Trafigura, Martin was unable to offer himself for re-election and accordingly has ceased to be a Director of the Company.
Notwithstanding the above, Trafigura continues as a significant shareholder in President and the parties continue to enjoy a strong and mutually beneficial trading relationship
Peter Levine, Chairman, commented:
"We would like to place on record our thanks to Martin for his services and professionalism towards President throughout his tenure. Our colleagues in Buenos Aires continue unabated to work closely with Martin and Trafigura in Argentina on a day-to-day basis for which we remain grateful.
"Operations continue to progress in Salta and the levels of realized prices achieved when we export is particularly pleasing."
