President Energy reports a 66% increase in Neuquén basin 2P net reserves

3/5/2018

LONDON -- President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, announces the results of the latest Argentine yearly reserves certified as at Dec. 31, 2017, conducted by JR Consultores led by Juan Rosbaco, a leading Argentine Reserves auditor.

Highlights:

  • President's Puesto Flores/Estancia Vieja, Neuquén Basin net 1P reserves increased by over 30% to 4.5 MMboe from the equivalent of net 3.2 MMboe when the assets were acquired
  • Net Argentine aggregate 1P reserves remain steady at 14.7 MMboe of which the Neuquén basin higher value reserves of 4.5 MMboe now comprise over 30%, up from 20% previously
  • Neuquén basin net 2P reserves increase by 66% from equivalent of 4.82 MMboe to 8 MMboe
  • Net Argentine aggregate 2P reserves increase to 26.6 MMboe of which the Neuquén basin reserves now comprise over 30% up from less than 15% previously with Puesto Guardián contribution to the total accordingly reducing
  • 2018 capex program capital expected to further increase President’s Neuquén basin reserves

The certification with an effective date of Dec. 31, 2017 was made pursuant to regulatory requirements in Argentina which require reserve reports to be filed with the relevant regulatory body by March 31 each year for the prior calendar year period. The regulations also require companies to change auditors each year to promote independence of audit.

The results of the auditor’s report, net to President, after taking into account the minority interest in the Puesto Flores/Estancia Vieja Concession, are as set out in the above highlights and the table below which for the sake of brevity will not be repeated in extenso here.

Importantly, the Argentine certificated results reveal a materially increased impact and influence on President's reserves in the high net back and profitable Puesto Flores Concession in the Neuquén basin with 1P and 2P reserves there up 30% and 66% respectively following the recent successful four well work-over program. Further upgrades in reserves at this Concession are anticipated as we proceed with our already commenced, fully funded, 2018 capex program.

To place the new reserves report in context, the significantly increased reserves in that Concession with its profitable producing barrels has a not insubstantial impact on the Company's asset valuation and enhanced shareholder value.

For the avoidance of doubt the reserves figures referred to above exclude the Company's operated producing and profitable assets in Louisiana.

Related News ///

FROM THE ARCHIVE ///

Comments ///

comments powered by Disqus