Interim Results

12 September 2014

PRESIDENT ENERGY PLC

("President", "the Company", or "the Group")

Interim Results

President (AIM: PPC), the oil and gas exploration and production company focused on Paraguay with producing assets in Argentina and Louisiana, announces its interim results for the six months ended 30 June 2014.

Highlights

Production Operations

· First half 2014 average daily production of 389 boepd (Argentina 171 bopd, USA 218 boepd)

· Current group production of 530 boepd following the acquisition of the additional 50% of Puesto Guardian

· In Argentina, activity was focused on running Puesto Guardian as efficiently as possible. Post period acquired the remaining 50% to double reserves and production in Argentina and provide control through operatorship

· Louisiana continues to provide the Company with valuable free cash flow

Paraguay

· Announced results of RPS independent audits of Prospective Resources; highlights the large potential scale of the opportunity in the Pirity Rift Basin

· The farm-in obligations on the Pirity Concession met in full; 59% participating interest in the concession assigned and approved by Government of Paraguay

· A further 5% carried working interest in Pirity concession was acquired through the purchase of LCH SA, giving a total of 64% participating interest in the concession

· Post period, PE-PY-J x1 (Jacaranda) well confirmed the presence of a thick live source rock of Devonian age; 20-28 Tcf gas in place resource potential of Devonian shales; de-risks all three of President's concessions

· Post period, Hernandarias Concession signed into law No. 5259/14; President exercised its option to farm in up to a maximum of 80% participating interest in the concession, of which 40% already earned; President controls as operator the entire Pirity Rift Basin

· Post period, the Lapacho well spudded on 3rd September

Argentina

· Average net production for the period was 171 bopd (H1 2013: 153 bopd)

· Current net production, post acquisition, is approximately 300 bopd; average realised prices in the period were US$74 per barrel

· Focus on cost efficiencies, preparation of the technical work for a reserves audit and future work programme

· Post period, President acquired the remaining 50% in Puesto Guardian becoming operator and doubling Argentine 2P oil reserves to 13 mmbbls (management estimates)

· President continues to do the sub-surface work at Puesto Guardian required for a reserves audit, with a focus on the results of its 2013 well stimulation campaign; President expects to update the market on reserves in Q4 2014 and with a plan aimed at increasing production in 2015

· At President's two other concessions (Mattoras and El Ocultar) outcrop studies, lab work and reprocessing of historical data are all underway

Louisiana

· Louisiana continues to provide the Group with solid production and cash flow

· Average production was 218 boepd (H1 2013: 212 boepd); average realised oil prices were US$102 per barrel

· Current production is averaging approximately 230 boepd, prior to the inclusion of the new Eagle Crest well, announced yesterday, in which President has a 3% overriding royalty and a 12% working interest following pay out of the drilling costs

· Steps are being taken to reduce administrative expenses to maximise free cash flow

Financial

· Revenue increased marginally to US$5.8 million (H1 2013: US$5.7 million) reflecting an increase in group average production for the period to 389 boepd (H1 2013: 365 boepd) and a slight decrease in oil prices in Louisiana

· Gross profit was maintained at US$1.9 million (H1 2013: Profit of US$1.9 million)

· Cash balances as at 30 June 2014 were US$23.0 million (December 2013: US$ 10.0 million) with US$13.9 million of prepayments already having been made for future drilling costs

· The Group continues to have an unused US$15 million revolving loan facility in place from IYA Global Limited, a company within the PLLG Investments Limited group

· In February, the Company successfully raised US$51 million of equity finance before fees and expenses

Outlook

· Louisiana together with increased 2P reserves in Argentina provide a solid foundation on which the Company can pursue its exploration programme in Paraguay as well as expand its current production

· The encouraging preliminary results received from the seismic in Paraguay and drilling results at Jacaranda in Paraguay have underlined the potential of President's Paraguayan assets

· Lapacho well spudded on 3rd September and is targeting a discrete, well-defined fault block trap within the greater prospect area, which management estimates could contain gross mean unrisked prospective resources of 1 Tcf gas and 30 mmb condensate

Commenting on today's announcement, Peter Levine, Chairman said:

"2014 to date has been a busy year with the commencement of President's exploration campaign in Paraguay. The Jacaranda well results give us optimism for our continued exploration campaign.

Away from Paraguay we have continued to enjoy steady cash flow from our assets in Argentina and Louisiana. The prospects for these assets have been further enhanced by the increase in our interest in the Puesto Guardian concession, bringing both additional revenue and operational control, and through the ongoing improvements and recent exploration success in Louisiana."

Contact

 President Energy PLC

Peter Levine, Chairman +44 (0) 207 016 7950

John Hamilton, CEO +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

Canaccord Genuity Limited

Tim Redfern, Henry Fitzgerald-O'Connor +44 (0) 207 523 8000

Bell Pottinger +44 (0) 207 861 3232

Gavin Davis, Henry Lerwill

Chairman's Statement

Summary

The first half of 2014 was principally focused on the execution of our drilling campaign in Paraguay and the maturation of our inventory of prospects and leads. 2D and 3D seismic data were interpreted in late 2013 and into 2014, and the first set of prospects was analysed by the independent consultancy RPS. The Company performed in full its earn-in obligations in the Pirity Concession earning a 59% interest. President's acreage position in the Pirity basin was increased through two transactions. First, a farm-in option was agreed on the Hernandarias Concession (completed and enacted into law in August). Secondly, in June, President Energy PLC (President) acquired the share capital of LCH SA, a single asset company holding a 5% carried interest in the Pirity Concession.

In Argentina, given the economic and political background, activities were limited to running Puesto Guardian as efficiently as possible. In July, President announced the acquisition of the remaining 50% of the Puesto Guardian Concession, which doubles reserves and production in Argentina, and gives the Company control to unlock the potential of the concession.

Louisiana continues to provide the Company with valuable cash flow, production figures being consistent with 2013 and oil prices remaining robust. Post period, production at East Lake Verret has been enhanced through the Eagle Crest well coming on stream.

Group net production (including the additional 50% of Puesto Guardian) is currently approximately 530 boepd, with production in the first half of the year averaging 389 boepd (a 7% increase from the previous period). In Paraguay, the Company has an exploration asset of material critical mass and upscale potential, underpinned by existing reserves and production in its other assets.

Paraguay

Paraguay is the core focus for the Company, and, in management's view, the three concessions acquired in 2012/2014 continue to demonstrate significant potential for the future. In January and in June 2014, President announced the results of independent audits of its Prospective Resources carried out by the international consultancy RPS over three prospect areas in Paraguay. The RPS audit is based on the results of the extensive 2013 3D and 2D seismic campaign conducted by President which identified two structural play fairways each containing two petroleum systems. The first is the Cretaceous petroleum system, known from old 2D data and an extension of the Palmar Largo trend in Argentina. The second is a newly confirmed underlying Palaeozoic petroleum system, successfully identified by the recent Jacaranda drilling that has charged the large producing fields in neighbouring southern Bolivia and north-western Argentina.

With this improved understanding of the prospect areas, President entered into an eighteen month contract with Schlumberger for the provision of project management and integrated drilling and completion services, including well site supervision and engineering, for its Paraguay drilling programme. President also contracted a rig from Queiroz Galvão Óleo e Gás S.A to drill the 2014 exploration programme.

The Jacaranda well results, announced post period, have confirmed the presence of a thick live source rock of Devonian age, and this de-risks the 32 large Devonian structural leads identified to date across all three of President's concessions. In addition, the discovery of the Devonian source rock highlights a possible unconventional resource potential, which supports the conclusions of the recent U.S. Energy Information Administration and Advanced Resources, Inc. report on international shale formations (World Shale Gas and Shale Oil Resource Assessment dated 17 May 2013) which quotes technically recoverable resources for just the unstructured Palaeozoic areas of the Paraguayan Chaco as 67 Tcf of gas and 3.2 billion barrels of oil.

Post period, President made three major announcements on Paraguay. The first was the announcement that the PE-PY-J x1 (Jacaranda) well had been successfully drilled and confirmed that the prolific Devonian petroleum system of SE Bolivia and NW Argentina extends into the Pirity Basin of Paraguay. The Jacaranda well has proved the first live Devonian source rock to be discovered in the Pirity Basin, and significantly de-risks President's acreage position. Management's proof of concept for this well has been validated. The second was the announcement that the Hernandarias Concession has successfully passed through both the Senate and House of Deputies and has been signed into law No. 5259/14, by the President of Paraguay, Horacio Cartes. As a consequence of the concession passing into law, President has exercised its option under the Conditional Farm-in Agreement to farm in up to a maximum of 80% participating interest and to become the operator of the concession. As a result, President controls as operator the entire Pirity Rift Basin. The third announcement was the spudding of the Lapacho well and an update on the resource potential for the Devonian shales. The approximately 200 km2 area presently proved by Jacaranda is estimated by President's management to hold 20-28Tcf gas in place in shale and shale associated formations, on the basis of analogues from the US of the Mancos Formation part of/related to the commercially successful Niobrara Formation. Furthermore, the Devonian Formation is expected to be present in significant thickness throughout much of President's acreage. Mapping suggests that the formation shallows to the north and is therefore expected to be in the oil window

Argentina

Given the economic and political backdrop in Argentina, the operator at Puesto Guardian has sought to focus on cost efficiencies, and together with President, prepare the technical work for a reserves audit and future work programme. Post period, President now owns 100% of Puesto Guardian and has become the operator. Proved and Probable reserves have doubled to 13 mmboe (management estimates) as a result of the acquisition, providing a solid foundation to our operations. Since taking over operatorship, positive cash flow contribution to President has increased and is currently running at US$150,000 per month.

President continues to do the sub-surface work at Puesto Guardian required for a reserves audit, with a focus on the results of its 2013 well stimulation campaign. President expects to update the market on reserves in Q4 2014. At President's two other concessions (Mattoras and El Ocultar) outcrop studies, lab work and reprocessing of historical data are all underway. President's discovery of a Devonian source rock at the Jacaranda well in Paraguay is encouraging for the Paleozoic potential in all three of President's Argentine concessions.

Average net production for the period was 171 bopd (H1 2013: 153 bopd). Current net production, post acquisition, is approximately 300 bopd. Average realised prices in the period were US$74 per barrel (H1 2013:US$71 per barrel).

Louisiana

Louisiana continues to provide the Group with solid production and cash flow. Average production remained consistent from the previous period at 218 boepd (H1 2013: 212 boepd). Average realised oil prices were US$102 per barrel (H1 2013: US$108 per barrel).

Post period end, a successful new discovery well drilled at East Lake Verret, the Eagle Crest well, established gross initial production in August of 492 bopd and 2,312 mcf of gas per day (total of approximately 875 boepd). President was fully carried for the cost of the well.

President has a gross overriding 3% royalty at Eagle Crest from start of production, and also a 12% Working Interest coming into effect following well pay out, which is expected to be mid-2015. President also manages the production handling from Eagle Crest through its controlled field facilities, generating additional income.

It is expected that the well will be brought on normalized production in the near future. Additional exploration prospects at both East Lake Verret and East White Lake are being evaluated.

Current production from Louisiana is averaging approximately 230 boepd, prior to the inclusion of the new Eagle Crest well.

Australia

President's PEL 82 block is continuing to be evaluated technically and is currently the subject of farm-out discussions which may or may not reach a successful conclusion.

Financials

· Revenue increased marginally to US$5.8 million (H1 2013: US$5.7 million) reflecting an increase in group average production for the period to 389 boepd (H1 2013: 365 boepd) and a slight decrease in oil prices in Louisiana.

· Gross profit was maintained at US$1.9 million (H1 2013: US$1.9 million).

· Administrative expenses have reduced to US$2.7 million (H1 2013 US$4.2 million) reflecting the capitalisation of US$1.8 million of costs related to the Paraguay drilling campaign. As a consequence of the reduction in administrative expenses and lack of impairment charge, operating loss reduced by 70% to US$0.8 million (H1 2013: US$2.8 million).

· Group cash balances as at 30 June 2014 were US$23.0 million (December 2013: US$10.0 million).

· The Company continues to have an unused US$15 million revolving loan facility available until 31 December 2014 from IYA Global Limited, a company within the PLLG Investments Limited group, which is beneficially owned by Peter Levine. The Company's independent directors, having consulted with its nominated adviser, RBC Europe Limited, consider that the terms of the transaction are fair and reasonable in so far as the Company's shareholders are concerned.

· Exploration and Evaluation expenditure on Paraguayan licences amounted to US$35.4 million including US$13.9m of advance payments in escrow.

· Trade receivables increased substantially to US$19.7 million (December 2013: US$5.4 million) as a result of prepayment and escrow structures that have been put in place for the Paraguayan drilling programme. These balances will unwind as the programme progresses.

· In February, the Company successfully raised US$51 million of equity finance before fees and expenses. The proceeds are being used to fund the Paraguay drilling campaign. New and existing shareholders participated in the raise including the International Finance Corporation (part of the World Bank Group) as a major shareholder.

Outlook

The encouraging preliminary results received from the seismic in Paraguay and drilling results at Jacaranda have underlined the potential of President's Paraguayan asset. The Lapacho well, the second in the drilling campaign, spudded on 3rd September and is targeting a discrete, well-defined fault block trap within the greater prospect area, which management estimates could contain gross mean unrisked prospective resources of 1 Tcf gas and 30 mmb condensate.

Louisiana together with increased 2P reserves in Argentina provides a solid foundation on which the Company can pursue its exploration programme in Paraguay.

Peter Levine

Chairman

11th September 2014

Condensed Consolidated Statement of Comprehensive Income

Six months ended 30 June 2014

Condensed Consolidated Statement of Financial Position

As at 30 June 2014

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2014

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2014

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2014

1 Nature of operations and general information

President Energy PLC and its subsidiaries' (together 'the Group') principal activities are the exploration for and the evaluation and production of oil and gas.

President Energy PLC is the Group's ultimate parent company. It is incorporated and domiciled in England. The Group has onshore oil and gas production and reserves in Argentina and the USA. The Group also has onshore exploration assets in Paraguay, Argentina, the USA and Australia. The address of President Energy PLC's registered office is 11 Hill Street, London, United Kingdom. President Energy PLC's shares are listed on the Alternative Investment Market of the London Stock Exchange.

These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 11th September 2014. The financial information for the year ended 31 December 2013 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2014 and 30 June 2013 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2013 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

2 Basis of preparation

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2013, which have been prepared under IFRS as adopted by the European Union.

These financial statements have been prepared under the historical cost convention, except for any derivative financial instruments which have been measured at fair value. The interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2013.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2014

Continued

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2014

Continued

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2014

Continued