President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update relating to the New Puesto Prado and Las Bases Concessions in Rio Negro Province, Argentina (President 90% and operator - EDHIPSA 10%).

Highlights 

• The Puesto Prado and Las Bases Concessions (together "the New Concessions") formally signed over to President in a ceremony attended by the Governor of Rio Negro, the Secretary of Energy of the Province, and our partners, the Provincial oil company EDHIPSA
• First oil now being produced from the reactivation of the first two wells in Puesto Prado
• Estancia Vieja gas has been successfully flowed to Puesto Prado and will be powering that field by end January

New Concession signing ceremony

At a ceremony which took place in Rio Negro Province, Argentina, attended by the Governor of the Province of Rio Negro, Alberto Weretilneck, and the Secretary of Energy of the Province, Sebastian Caldiero, the New Concessions were formally signed over to President and its partner EDHIPSA, the Provincial energy company.

The attendees included representatives from all the key provincial authorities, landowners, union representatives, suppliers, contractors and members of the public.

Puesto Prado Oil Production

In line with President's plan to bring the New Concessions in to production in a controlled manner, the first two Puesto Prado oil wells have been reactivated and are producing in line with expectations. Stable flow rates will be announced in the new year when it is anticipated that a further three to four wells will be reactivated and brought into production.

The oil is currently being shipped for treatment and sale by President's contracted road transport to the Puesto Flores battery plant, 30km away. Over the course of 2019, after necessary infrastructure works, Puesto Prado's own battery will be reactivated which will then allow the oil to be sold directly to nearby refineries.

Gas Pipeline

After testing of the 15 km of newly acquired pipeline between Estancia Vieja and Puesto Prado, gas has flowed from Estancia Vieja and to the Puesto Prado field. This is a significant step as, whilst no third-party gas sales are taking place at present, it represents the first pipeline flowing gas production from Estancia Vieja under President's operatorship and the first stage of the ongoing commissioning of the pipeline acquired with the New Concessions stretching from Estancia Vieja to the tie-in with the regional pipeline via Puesto Prado and Las Bases. The flow of gas is currently suspended awaiting the necessary volume metering equipment for inter Concession pipeline measurement. This is expected to be installed during January 2019 whereupon Estancia Vieja gas will power the Puesto Prado field 24/7.

President is currently proceeding with the testing and commissioning of the next section of pipeline between Puesto Prado and Las Bases which, once completed and necessary compression equipment is installed in Las Bases, will enable Estancia Vieja gas to be off-taken for commercial sale combined with gas scheduled to come from a one or two well reactivation programme in Las Bases planned to commence in the New Year. 

Peter Levine, Chairman and Group CEO commented:
"Whilst work in earnest in Puesto Prado and Las Bases will commence during the course of 2019 when we have a greater understanding of sub-surface potential, we are not losing time to generate revenue from both those areas and the  gas in our Estancia Vieja field.

"The pipeline and these new Concessions  will enable us to pivot towards gas production, providing a greater diversity and balance to our hydrocarbon production whilst still driving increasing oil deliveries.

"Importantly, the extent of our enlarged Concessions in Rio Negro Province gives us a platform for growth and valuable critical mass in the important Neuquen Basin."