TIDMPPC
RNS Number : 1520A
President Energy PLC
25 September 2015
25 September 2015
PRESIDENT ENERGY PLC
("President" or "the Company")
ARGENTINA RESERVES & PROSPECTIVE RESOURCES UPDATE
Significant Increase in Reserves and Prospective Resources
2P Oil Reserves increase by 28%
President announces a significant increase in Reserves on its
100% owned and operated Puesto Guardian Area, with the issue of a
new independent statement of Crude Oil Reserves carried out by the
international petroleum consultancy, Gaffney, Cline &
Associates ("GCA") which supersedes the previous 2014 statement of
GCA.
In addition, President has completed further geological studies
on its Paleozoic deep gas/condensate prospect at the Martinez Del
Tineo field on the Concession and on associated prospects at
President's adjacent Matorras Licence and announces significantly
increased management estimates of the Prospective Resources
compared with the GCA assessment published in January 2012.
Highlights
2015 GCA Assessment - Puesto Guardian Area
-- 1P Proved Oil Reserves increase by 21% to 11 MMBbls*
-- 2P Proved and Probable Oil Reserves increase by 28% to 18.1 MMBbls*
-- 3P Proved, Probable and Possible Oil Reserves increase by 32% to 23.1 MMBbls*
-- NPV10 (net present value discounted by 10%, pre-corporation
tax) of President's 2P Oil Reserves increases by 10% to US$ 329
million
2015 Management assessment - Martinez Del Tineo (MDT) and
associated Prospects
-- Management now assesses that President has unrisked
recoverable Best Estimate Prospective Resources** as of 30 June
2015 of 6.6 Tcf of gas and 166 MMBbls of condensate relating to the
deep Paleozoic gas/condensate prospect at the Martinez Del Tineo
field and associated prospects on President's adjacent Matorras
Licence.
Peter Levine, Chairman, commented
"The independently audited reserves increase is a clear
affirmation of the potential in our Puesto Guardian Concession. We
are now addressing the challenge of narrowing the ratio between
production and reserves by concentrating on developing this asset
to its maximum potential in respect of which a further announcement
will be made in due course.
The MDT prospect remains tantalising. Whilst we must recognise
the usual and subjective exploration risks, the potential prize
from this on-shore, easily accessible asset in a country with a
ready gas market currently offering a gas price of US$ 7.5/MMBtu,
is compelling."
Summary
The GCA Assessment
Based upon President's new Concession for Puesto Guardian as
announced on 14 September 2015, GCA has produced an updated
statement of President's Oil Reserves and Net Present Value for the
five fields in the Concession effective as at 30 June 2015 (the
"Statement"). The Statement takes into account the new Concession
terms including the Concession now extending to 2050.
A full copy of the Statement is now available on the Company's
website which contains a glossary of the key terms used.
The Martinez Del Tineo (MDT) Deep Gas/Condensate Prospect
GCA had previously assessed that President had unrisked
recoverable Best Estimate Prospective Resources as of 31 October
2011 of 570 Bcf of gas and 14.5 MMbbls of condensate relating to
the MDT deep Paleozoic gas/condensate prospect. The GCA economic
evaluation of the unrisked Best Estimate Prospective Resource gave
a NPV10 value of US$1,028 million calculated at a gas price of
US$4/MMBtu and a condensate price of US$65/bbl.
As a result of recent technical studies, including studies
undertaken by President on previously unrecorded nearby out-crop
sections, re-processing of all regional seismic and incorporation
of recent knowledge from the exploration successes across the
border in Paraguay, President has now high-graded its management
estimates of the Prospective Resource and included associated
prospects in President's adjacent Matorras Licence area.
President has now assessed that the unrisked recoverable Best
Estimate Prospective Resource for the MDT prospect as of 30 June
2015 is 2.3 Tcf of gas and 59 MMBbls of condensate, with an overall
chance of success of 25%.
With the inclusion of the Prospective Resources in the
neighbouring Matorras Licence, the aggregated, unrisked recoverable
Best Estimate Prospective Resource for these Paleozoic prospects as
of 30 June 2015 is 6.6 Tcf of gas and 166 MMBbls of condensate.
The MDT prospect can be explored by the deeper leg of a
development well at the MDT field drilled to intersect and produce
the shallower proven and probable oil reserves, thereby saving
costs of a dedicated exploration well. The deeper exploration leg
in MDT would also act as a test of concept for the Paleozoic
Prospective Resources in the Matorras Licence which are dependant
prospects.
Current gas prices in Argentina are running at US$7.5/MMBtu and
in excess of US$70/bbl for condensate.
Armed with the new long term Concession, President is continuing
discussions with potential strategic partners relating to this
prospect.
A new presentation on the MDT deep gas and associated prospects
is now available on President's website.
* The GCA figures reflect the current 100% ownership, gross of
royalties and are estimated on the SPE (Society of Petroleum
Engineers) standard.
** The unrisked recoverable Best Estimate Prospective Resources
as of 30 June 2015 of 6.6 Tcf of gas and 166 MMBbls of condensate
is the aggregation of the individual Prospective Resource estimates
of the deep Paleozoic gas/condensate prospect at the Martinez Del
Tineo field and the associated prospects on President's adjacent
Matorras Licence.
Glossary of Terms
Tcf. Trillion cubic feet (gas)
Bcf. Billion cubic feet ( gas)
MMBtu Million British Thermal Units ( gas)
MMbbls Million barrels of oil
Miles Biggins, Bsc Joint Honours University College London, with
25 years of experience in the oil and gas sector, is a Petroleum
Engineer and member of the Society of Petroleum Engineers who meets
the criteria of qualified persons under the AIM guidance note for
mining and oil and gas companies, has reviewed and approved the
technical information contained in this announcement.
Contact:
President Energy PLC
Peter Levine, Chairman +44 (0) 207 016 7950
Miles Biggins, COO +44 (0) 207 016 7950
Ben Wilkinson, Finance Director +44 (0) 207 016 7950
RBC Capital Markets
Jeremy Low, Matthew Coakes, Daniel
Conti +44 (0) 207 653 4000
Peel Hunt LLP
Richard Crichton, Ross Allister +44 (0) 207 418 8900
Bell Pottinger
Gavin Davis, Henry Lerwill +44 (0) 203 772 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLEALNLASDSEFF
(END) Dow Jones Newswires
September 25, 2015 02:00 ET (06:00 GMT)
Meridian Petroleum (LSE:MRP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Meridian Petroleum (LSE:MRP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
