23rd May 2019 12:01
LONDON (Alliance News) - President Energy PLC on Thursday said it swung to a profit in 2018 due to its acquisition of the Puesto Flores and Estancia Vieja assets in Argentina.
Shares in President Energy were down 5.3% at 8.52 pence on Thursday.
The oil and gas company posted a USD6.1 million annual pretax profit, swinging from a USD13.2 million loss in 2017 as revenue more than doubled to USD47.2 million from USD17.9 million.
This transformation was the result of President Energy's acquisition of Puesto Flores and Estancia Vieja from Chevron in October 2017.
Overall production doubled to 2,279 barrels of oil equivalent per day from 1,121 barrels, driven by the acquisitions as well as higher production rates in both Argentina and the US. Moreover, the average product price rose to USD59.6 per barrel of oil equivalent from USD50.6 per barrel.
President's group net exit year production rose to 3,300 barrels of oil equivalent per day from 1,900 barrels and the company is on target to exit 2019 with production of more than 4,900 barrels per day. It hopes to meet this target through a USD50 million work programme in 2019 and 2020 in Argentina, which is fully funded and includes 15 new wells, around 20 workovers, and aims at 50% exit production growth year-on-year.
Seismic re-interpretation at the company's Jefferson Island licence in the US, which was acquired in 2018, is in progress and due to complete by June 2019 before drilling begins midway through the second half of the year.
President Energy Chair Peter Levine said: "The group is well placed to materially expand its medium and longer-term capacity and profitability following our recently announced USD50 million work programme of multiple workovers and drilling, the first part of which has already commenced.
"We have a clear roadmap, concentrating on fast track growth in cash flow, profitability and margins. Our free cash flow is focused on our capex programme and we look to the future with confidence especially given the group's multiple gas and oil production and exploration opportunities."
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