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 Group net production as well as its Concessions in the Rio Negro Province, Argentina (President 90% and operator - Edhipsa 10%).

Group production

President has beaten its 3,000 boepd target for net Group production exit year end 2018.

The Company is producing at a net Group level of approximately 3,300 boepd. This represents an increase of over 50% year on year and is being achieved without the benefit of any contribution from the Las Bases Concession and with only a limited contribution from the Puesto Prado and Estancia Vieja fields, all in Rio Negro Province, Argentina. Commercial gas sales from the Las Bases and Estancia Vieja Concessions are expected to commence by the end of Q1 2019.

Production in the Puesto Guardian field in Salta Province remains stable as does production from President's interests in Louisiana, USA.

Well PF0 1005

This well has now been successfully tested and placed on production with initial levels of approximately 250 bopd, being in excess of expectations. Both the Punta Rosada and the Lotena formations are producing on a co-mingled basis.

Management expect that the next Reserves Audit, due to be published in March 2019, will show a significant increase in 1P Proven reserves at the Company's Rio Negro Concessions due to the successful drilling and workover campaigns delivered in 2018.  

This latest result means the three well drilling programme has met with 100% success. All wells are now producing and were delivered on time and budget. Management are now monitoring overall field performance in line with good reservoir management practice with the objective of maximising monthly average production and minimising downtimes.

Projected operational activity in Q1 2019

Operational work in the first quarter of 2019 will include, but will not be limited to:

• Preparation and planning of the next drilling campaign in Argentina due to commence in Q2 ramping up into H2 as well as long lead planning for 2019 exploration in Paraguay;
• Workover campaigns in Rio Negro to bring on new production from currently shut-in wells in the Puesto Prado and Estancia Vieja fields, further enhancing economies of scale;
• Commencement of added value commercial gas production and pipeline sales from existing shut-in wells at the Las Bases and Estancia Vieja fields as President seeks to have a greater revenue contribution from gas production;
• Electrification of the Rio Negro fields using President's own gas from Estancia Vieja making substantial operational savings and avoiding costly power outages from the grid;
• Installation of a dual fuel power system in the Dos Puntitas field, Puesto Guardian Concession in Salta Province, Argentina using President's own generated gas reducing reliance on diesel;
• Preparations and planning for a four well drilling programme to commence in early Q2 2019 at Jefferson Island, Louisiana; and
• Continued focus on costs and margins benefiting from increasing efficiencies through sensible investment and greater economies of scale generated by significant production growth.

Peter Levine, Chairman and Group CEO commented:
"Our objectives for 2018 were successfully delivered, and are history now. The strategy for 2019 is to take everything we achieved and build on it to deliver another year of dynamic growth and profitability both organically and by acquisition.

"The expected significant increase in Proven reserves from our Rio Negro assets underlines the material improvement in shareholder value achieved last year. Whilst President's 2P Proven and Probable reserves and extensive resources are important to demonstrate future potential, the essential core value of our business is reflected by proven hydrocarbon reserves particularly with greater emphasis from the higher value added Rio Negro fields.

"President continues to maintain a 360 degree focus on every aspect of the business from new production, reserves and reservoir management to the crucial aspects of cash management and control of G&A costs and expenses.

"We look forward to delivering and escalating shareholder value in 2019."