President Energy PLC – H1 Group Management Reporting & Operational Update
President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides highlights of the H1 2019 Un-Audited Group Management Reports and a trading update.
H1 2019 Un-Audited Group Management Report Highlights:
• Sales c. US$23.5 million (7% up on H1 2018) notwithstanding lower average sales prices compared to the same period last year.
• Adjusted EBITDA* of c. US$8 million.
• Bank debt reduced from US$10.15 million at start of period to US$4.82 million at today’s date.
• Average net Group production for the period was c. 2,500 boepd (8% up on full year average for 2018), notwithstanding previously announced operational outages and shut-ins in Argentina and Louisiana.
• With an increasingly better second half in prospect over the latter part of H1, President is on track for a projected Group adjusted EBITDA for the full year of some US$20 million.
• Target average production guidance for H2 will be announced at the same time as the announcement of the H1 results which should reflect the expected increase from the latter part of H1 as the benefit of the operational work being undertaken and planned referred to below starts to impact as well as the gradual bringing in of the ready to produce shut in production referred to in the second bullet point of the Operational Update below.
• Interim results are expected to be announced towards end of September.
• The workover programme is still continuing. A detailed review of the results of the programme so far will be given in September.
• In addition to existing production, President has an estimated net 1,100 boepd now tested, proven and ready to produce, subject to surface facilities being completed, save in the case of the Triche well in Louisiana which is just subject to an ongoing workover. The completion of those facilities will start to be effected, step by step in H2 and Louisiana production should start to be back on line by September.
• Further, additional hydrocarbon production is expected in due course from sub-surface programmes which in the normal course of planning are being re-evaluated and assessed in the light of knowledge gained this year from the Workover programme and follow-on detailed sub-surface analysis. Concrete details of such are expected to be announced at the same time as the Workover review in the first part of September.
Peter Levine, Chairman, commented:
“President has delivered positive results in H1, notwithstanding the headwinds as previously announced which should now, step by step, be receding in the rear-view mirror.
“In the space of only some 20 months President has enjoyed a period of transformative progress including the successful integration of four valuable acquisitions, a strategic pan-regional pipeline, the bringing on of new production, generation of positive cash flow and attaining good margins. Despite this, President’s share price, uncoupled from such progress, has dropped some 35% in value during that time.
“President, remains confident as to its future prospects and success as an energy business and is examining initiatives to deliver value for shareholders.”