President Energy (LSE:PPC) showed info of its paintings programme for 2019/2020 in an announcement on Monday. The firm plans to spend around $50m at the programme which it says it believes it could fund from existing cash flow. The programme consists of plans to drill 15 new wells and to perform around 20 workovers
President’s operations are in large part focused on belongings in Argentina with it exiting 2018 with the production of around 3300 barrels of oil equivalent in line with day (boepd). That discern represented a year-on-yr increase of more than 50pc and exceeded the employer’s unique target of 3000 boepd. President’s purpose is to supply a similarly 50pc boom in yr-on-year manufacturing through the cease of the 2019/2020 programme.
Over the next few months, the firm plans to finish as a minimum of ten workovers in Puesto Flores Estancia Vieja, Puesto Prado, and Las Bases. A rig has been mobilized to the first properly location.
Renovation and commissioning of the oil remedy plant in Puesto Prado by way of the give up of May will allow deliveries of oil from the sphere directly to local refineries growing margins. The agency will then recognition on upgrading the gas plant in Las Bases to increase its capacity extra than ten-fold to 250k cubic metres of gas. President plans to drill around seven new manufacturing and appraisal wells in the second half of the yr. The organization will even commission an electricity technology plant to strength Puesto Flores from gasoline at Estancia Vieja, promoting surplus electricity to the grid.
Next yr, President will drill eight further wells across Las Bases, Puesto Prado, Estancia Vieja, and Puesto Flores and around 8 workovers. A 2nd phase of upgrading Las Bases is likewise planned in 2020, growing its potential to a million cubic metres of gasoline.
President’s percentage price has been in decline because the start of 2018 whilst it became round 12.5p. Today, the percentage fee is 7.25p equating to a Market Cap of around £80.5m.