14th May 2018 11:41
LONDON (Alliance News) - President Energy PLC on Monday said it has begun a follow-up well workover programme in Argentina while also saying the country's macroeconomic issues should not materially affect the company.
President, which carried out a successful initial workover at its Neuquen basin assets earlier this year, has now begun a new one covering seven wells. The work will take between two and three months.
The company has also started preparations for a long-term gas testing of three formerly shut-in wells, with work due to begin in June. If successful, the wells will be placed onto full production.
At its Puesto Flores sites, President has further brought forward the start date of its drilling programme, with work now due to start in September.
President also on Monday noted issues in Argentina concerning the peso exchange rate and inflation, saying its oil and gas sales are conducted in US dollars at the prevailing peso/dollar exchange rate calculated on the date the money is actually paid.
Further, its Argentine bank loan has its reference for both capital and interest in dollars.
It said this news has partially clouded a positive development in Argentina's Congress last week concerning a possible new capital markets law which would positively affect President's plans to list on the Argentine Stock Exchange.
This law, President added, could boost Argentina's chances being promoted to emerging market status.
Chairman Peter Levine said: "Action has commenced at our Neuquen basin assets which will see us working continuously between now and the end of the year with the objective of achieving significant organic growth by the end of this year.
"Our confidence and commitment to the country of Argentina and its prospects is underlined by the steadfast determination to increase and accelerate investment as well as the continuing plans to list our shares in Argentina and look for sympathetic, value generating acquisitions in the country."
Shares were flat on Monday at a price of 10.15 pence each.
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