President Energy reports solid progress in Argentina

President Energy updated the market on its first quarter performance at its Argentina subsidiary PPSA on Friday, reporting turnover of $8.7m (£7.14m).

The AIM-traded firm said it was currently projecting turnover in Argentina for the full year of more than $40m.

It said the results did not include any beneficial impact from the successful new wells in Salta, which were expected to positively impact results from the current, second quarter.

EBITDA and free cash generation for the three months at PPSA totalled $4.5m, and profit before tax totalled $5.3m, and $4.5m after tax.

The company said the average oil price received in Rio Negro of was $54 per barrel, which since the quarter ended had increased 8% and was projected to rise further this year.

At Salta, President said the new DP2001 well was successfully stimulated as a final part of pre-production testing, and was now on stream to the battery.

The initial results were described as “encouraging”, with production estimated at about 200 barrels of oil per day, as well as higher-than-expected gas, which was being used to partially alleviate diesel use and thus reduce cost at the facility.

President said the next well to have its final stimulation would be DP2003, where similar results were expected.

The workover rig was completing the new well PG13, meanwhile, with initial test results set to be available around the end of May.

President said the old well, PE8, was ready to start up again after a workover, and was awaiting spare parts for its pump, which were expected by the end of the month.

Finally, in Louisiana, President Energy said production was continuing to improve.

The Triche well appeared to have stabilised, the board said, exceeding expectations on both oil and gas, with gross production now over 300 barrels of oil equivalent per day, and the Simmons well steady at 50 barrels of oil per day.

“The recent progress in Salta is encouraging with new wells coming on line step by step,” said chairman Peter Levine.

“The mission is now to exploit the enlarged well stock including opportunistic workovers as appropriate, commencing the secondary recovery capex programme and managing and optimising production and opex.

"The long awaited increasing domestic prices in Argentina and export where appropriately possible should assist in continuing our positive momentum.”

Levine said the company expected to announce full-year results for 2021 in June.

“Average group production figures will be given twice yearly on the issue of half and full term reports.

“The announcements to the market of the quarterly financial reports in Argentina will, as today, cover the key financial metrics published in Argentina.”

At 1255 BST, shares in President Energy were up 3.68% at 1.63p.

Reporting by Josh White at Sharecast.com.