President Energy reports first oil flows from Puesto Prado, Argentina

December 20, 2018

LEEDS -- President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, has provided the following update relating to the New Puesto Prado and Las Bases Concessions in Rio Negro Province, Argentina (President 90% and operator - EDHIPSA 10%).

New Concession signing ceremony

At a ceremony which took place in Rio Negro Province, Argentina, attended by the Governor of the Province of Rio Negro, Alberto Weretilneck, and the Secretary of Energy of the Province, Sebastian Caldiero, the New Concessions were formally signed over to President and its partner EDHIPSA, the Provincial energy company.

The attendees included representatives from all the key provincial authorities, landowners, union representatives, suppliers, contractors and members of the public.

Puesto Prado oil production

In line with President's plan to bring the New Concessions in to production in a controlled manner, the first two Puesto Prado oil wells have been reactivated and are producing in line with expectations. Stable flowrates will be announced in the new year when it is anticipated that a further three to four wells will be reactivated and brought into production.

The oil is currently being shipped for treatment and sale by President's contracted road transport to the Puesto Flores battery plant, 30 km away. Over the course of 2019, after necessary infrastructure works, Puesto Prado's own battery will be reactivated which will then allow the oil to be sold directly to nearby refineries.

Gas pipeline

After testing of the 15 km of newly acquired pipeline between Estancia Vieja and Puesto Prado, gas has flowed from Estancia Vieja and to Puesto Prado field. This is a significant step as--while no third-party gas sales are taking place at present--it represents the first pipeline flowing gas production from Estancia Vieja under President's operatorship and the first stage of the ongoing commissioning of the pipeline acquired, with the New Concessions stretching from Estancia Vieja to the tie-in with the regional pipeline via Puesto Prado and Las Bases. The flow of gas is currently suspended, awaiting the necessary volume metering equipment for inter Concession pipeline measurement. This is expected to be installed during January 2019 whereupon Estancia Vieja gas will power the Puesto Prado field 24/7.

President is currently proceeding with the testing and commissioning of the next section of pipeline between Puesto Prado and Las Bases which, once completed and necessary compression equipment is installed in Las Bases, will enable Estancia Vieja gas to be off-taken for commercial sale combined with gas scheduled to come from a one or two well reactivation program in Las Bases planned to commence in the New Year.

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