President Energy - Maximising value from conventional assets

President Energy’s (PPC) drilling activity is due to recommence in H120 and, alongside significantly increased production from Estancia Vieja, will contribute to a 2020 management estimated average production rate of over 4,000boepd, up from an average of c 2,400boepd in 2019. Following the debottlenecking of a section of the evacuation pipeline system, PPC expects to increase the share of gas in its production mix to c 30%. This comes at a time when there seems to be more clarity from the new president of Argentina, Alberto Fernández, on the importance of the country’s oil and gas industry. PPC also announced that Trafigura acquired an equity position in the company, with PPC’s debt reduced by c $6m, demonstrating confidence in its business plan. CEO Peter Levine is a 29.7% shareholder and principal funder, ensuring that interests are aligned with those of all shareholders.