President Energy swings to FY loss as output rises

Paraguay- and Argentina-focused President Energy upped its daily production rate by 15% to 490 barrels of oil equivalent per day in 2015 in what it described as a challenging year due to macro and micro headwinds.

The oil and gas exploration and production company swung to a full-year pre-tax loss of $18.7m, from a profit of $14.3 million. Revenue from continuing operations was $10.1m, from $12.6m, reflecting lower average oil prices.

President’s shares were up about 1.7% this afternoon.

The comparative 12-month stretch was helped by a $29.4m non-operating gain, versus $150,000 in the just-finished leg. Impairment charges totalled $11.4m in 2015, from $11.9m in 2014.

“The emphasis in 2016 will be to increase production, cash generation and margins,” said chairman Peter Levine in a statement.

“The focus is therefore on the new drilling programme in Argentina in the second half of the year.

“As we have rationalised central overheads we have been investing in new key management competence in Argentina and we continue to make progress in this regard.”

In a separate statement, President said normalised output from its Puesto Guardian Concession was running at a daily rate of more than 500 barrels of oil per day (bopd), with a new work-over programme underway on a further two producing wells aimed at maintaining and enhancing production levels.

That production level was almost double the average level of 2015, the company said. Average output was up 32% to 271 bopd in 2015, and average oil sales for that year came in at $67 a barrel, from $76 a year earlier. It was presently at about $58.

“A three development well programme is now projected to commence before the end of July, subject to all appropriate contracts being in place," President added.

“The programme is currently planned to be completed and the wells brought on stream in stages through second-half 2016. The results will then be analysed with a view to considering a further drilling programme in 2017 on a step by step basis.”