Lapacho Well Spuds & Jacaranda well evaluation

4 September 2014

PRESIDENT ENERGY PLC

("President" or "the Company")

Lapacho Well Spuds

Jacaranda well evaluation shows major shale associated resource potential estimated in excess of 20Tcf gas in place

President is pleased to announce the spudding of the Lapacho well, Paraguay, the second of three wells in its potentially high impact exploration programme. This well 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.

The Company has also completed the preliminary specialist evaluation of the logs and rock samples from the Jacaranda well. The evaluation shows a significant gas and condensate volume (with oil potential to the north) estimated to be in excess of 20 Tcf gas in place in the Devonian shale associated formation. This evaluation further validates the decision to suspend the well for future flow testing, in addition to deepening the well into the conventional sand targets beneath the Devonian shale formation.

Peter Levine, Executive Chairman, commented:

"The preliminary results of the evaluation of the Jacaranda well are very encouraging and while the priority for President remains targeting the very significant conventional prospects in its operated areas, it is clear that significant resource potential has been identified in the Devonian Formation, for which flow testing is required. Whilst our current focus is on the underlying sandstone reservoirs in Lapacho, the latest analysis of Jacaranda shows much promise for the future.

We remain very grateful to the President, Government and people of Paraguay for their encouragement, cooperation and assistance as we endeavour to open up a new hydrocarbon province in Paraguay."

Lapacho well (President 64% Operated Participating Interest)

The Lapacho well was spudded ahead of schedule on 2 September. The estimated time to Target Depth is 70 days. Seismic indicates the presence of a 400 metre section predicted to contain thick reservoir Santa Rosa Formation sands lying at a drill depth of 4,300 metres immediately below the Devonian source rock. The greater Lapacho area is considered by President to contain gross mean unrisked resources of 5.2 Tcf and 157 mmbbls of condensate. The Lapacho well itself will target discrete, well-defined fault block trap with management estimates of 1Tcf of gas and 30 mmbbls of condensate of gross mean unrisked resources.

Jacaranda Well Evaluation (President 64% Operated Participating Interest)

In the announcement of 13 August 2014, President stated that the Devonian source rock formation would be undergoing analysis for unconventional potential. Having consulted independent experts, President is of the view that the Devonian source rock formation (Los Monos and Icla) encountered in Jacaranda, is most closely analogous to the Cretaceous Age Mancos Formation in the US, part of/related to the commercially successful Niobrara Formation. This assessment is based on the similar thickness and rock properties.

During the drilling of Jacaranda, inflows of gas into the wellbore after drilling were recorded, with trip gas of up to 50%. Hydrocarbon shows ranging from C1 (methane) to C5 (pentane) were observed, indicating liquid generation, confirmed by thermal maturity measurements of rock and gas samples.

Siltstone intervals were encountered throughout the Devonian Formation, including one interval of 30 metre thickness. The evaluation of the specialist fracture detection logs shows a high density (1-5 per metre) of natural fractures throughout the formation. Log quality was hampered in places due to hole enlargement from cavings, although natural fractures are concluded to have contributed to this.

Based upon published US EIA figures, the Mancos Formation in the US holds 100-140 Bcfe /km2 in shale and shale associated formations. Condensate ratio depends upon thermal maturity with depth, but in the Jacaranda location is expected to be in excess of 15%.

President now operates 34,500 km2 under licence. 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 the Mancos data. 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.

President considers that the potential for commercialisation of gas in Paraguay is substantially more favourable than in the U.S. and in other South American countries due to a variety of significant factors. There is no commercial domestic production yet, increasing domestic and export demand. Furthermore, Paraguayan fiscal terms are considerably more favourable and encourage exploration, development and inward investment. The absence of high import duties and restrictions, together withincentivisedgovernment tariffs unique to Paraguay, make the monetisation of this type of resource both real and tangible. Transportation of gas is not considered a major issue for large volumes.

In the US, due to low gas prices, commercialisation of the Mancos is presently focused on liquids in sweet spots, associated with siltstone intervals and natural fracturing within the overall shale interval. Based on published data, Mancos wells can exhibit initial production of 400-500 boe/d and recoveries of 250-500 kboe per well.

These preliminary results validate the decision to suspend the well for future flow testing.

It is important to re-emphasise that the Jacaranda well has yet to penetrate the sands beneath the Los Monos Formation which President believes may be hydrocarbon bearing. This would provide an additional, conventional target on re-entry of the well.

A short technical slide presentation will be available on President's web-site today.

Miles Biggins, Bsc Joint Honours University College London, with 22 years of experience in the oil and gas sector, 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.

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