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Oil price

Greetings from Fort Lauderdale where US TV is wall to wall Ukraine as you might expect, tonight it’s the State of the Union address.

Re the oil price it’s very much more of the same, prices remain strong and with the April Brent contract expiring WTI caught up somewhat.

Company wise Shell has said it will leave to Gazprom Sakhalin consortium (27.5%) and the Salym Petroleum development (50%). Exxon has exposure here too as so Equinor who are moving out. Big winner in the majors is Chevron who have very minor Russian exposure.

President Energy

President has provided an operational and management update,

Puesto Guardian Concession, Salta, Argentina

The Company is pleased to announce that the first two wells drilled in Salta in the current programme have been in successful commercial production for over one week.

Well DP 2001, currently successfully commercially producing in the first phase of testing will within the next 10 days undergo planned stimulation in two parts under the second phase of the production testing programme. Whilst each well behaves differently there is no present evidence to expect post stimulation anything materially contrary to the stated well performance expectations in this well of approximately 250 bopd.

Well DP 2003 is in an earlier stage of first phase of production testing although it is already clearly commercial. 

As such testing will continue for a period of time to optimise production and assess reservoir capabilities, the drilling rig has moved to and is in the process of setting up at well PG 13-1 at the Puesto Guardian field within the Salta Concession, some 45 km away from the Dos Puntitas field. This well is planned to be a side track from an existing well location. Work is currently projected to commence this week with timing for the drilling rig work approximately 21 days.

The benefit of the recent increased production is already being felt in Salta where realised domestic prices are currently approximately US$60 per barrel.

South Louisiana, USA

The workover at the Triche well has now been successfully completed and President is pleased to advise that both this well and the Simmons well are back on normal production as from 25 February.

The Triche well is still settling down producing 180 bopd gross with 60 boepd of gas. The Simmons well is estimated to be producing 50 bopd gross.

Management update

The Company is pleased to announce that it has recruited Daniel Musri, an Argentine national, to the position of CEO of President Argentina. Whilst it is a non-main board position, Daniel has overall responsibility for President’s operations in that country. Daniel, who joins us from Vista Oil and Gas, the Mexico/Argentina public oil and gas company, is a reservoir engineer by training and, prior to Vista, worked for 10 years as Vice President for Schlumberger in their Production Management arm, and before that for 18 years at the large Argentine oil and gas company Perez Companc, rising from junior reservoir engineer to asset manager. Daniel has been tasked with reviewing all operations within President’s Argentinian business with a view to improving the returns from these operations and ensuring targets that are set are met with the appropriate accountability for results.

Jordan Coleman, our hard working COO for Latam will continue to work with Daniel during the transition. His future focus will centre on our Paraguay exploration project, overseeing the business in the United States as well as providing such continuing support for Daniel as may be necessary.

Peter Levine, Chairman, commented:
“President has many things to look forward to in 2022 from a very robust trading, shareholder and strategic relationship base. The production news today announced are welcome additions to Group cash flow

“The future for President must be driven by a dynamic, motivated and incentivised  operations and management team able to capitalise on these attributes to expand the Group materially, particular in different geographies. Daniel’s appointment is a part of this strategy and we welcome him to the Group

“I look forward to informing you of further developments over the coming months.”

President continue to deliver excellent well results, in this case two wells from the Salta programme as well as the two wells in Louisiana back to normal production. In addition Peter Levine continues to strengthen his senior management team, in this case as boss of Argentina. 

At least the market has recognised this news with a 10% hike in the shares but it is still totally absurd that it is only to 1.6p, with this portfolio it should be way higher.

Getech

Getech, the NetZero technology provider and data-led energy asset developer, is pleased to announce that it has secured new contract wins for its geoscience data and energy software products with a combined value of c. £1.2 million.

The Company’s customers use these unique products to locate, de-risk and optimise the development, and long-term economic production of subsurface projects – including oil and gas, strategic minerals, geothermal, green hydrogen and carbon capture and storage.

The contracts, which include annual and multi-year licences with new and existing customers, add to Getech’s recurring revenue and orderbook.

Getech’s Chief Executive Office, Dr Jonathan Copus, commented:
“We are delighted by these contract wins and that our data and energy software products are continuing to demonstrate strong demand. With Getech being in the vanguard of the energy transition, we are continuing to invest in our foundation product offering to deliver new tools and content that promote their use across an array of energy transition sectors. As the pace of progress to NetZero accelerates, we see opportunity to deliver significant growth”

I have followed Getech for some time and it continues to develop data and energy software products for its increasingly sophisticated customer base. These customers use these unique products to locate, de-risk and optimise the development, and long-term economic production of subsurface projects – including oil and gas, strategic minerals, geothermal, green hydrogen and carbon capture and storage.

All these applications are amongst the fastest growing parts of the energy market which as CEO Jonathan Copus says, ‘puts the company in the vanguard of the energy transition’ an important place to be and investors might be wise to put Getech on the radar screen. The shares doubled in the last quarter of last year and since given back around half of that rise, with news like today’s and probably more to come I suspect that the shares will revisit previous highs.

KeyFacts Energy Industry Directory: Malcy's Blog