Operational Update

28th April, 2011

PRESIDENT PETROLEUM COMPANY PLC

("President" or "the Company")

Operational Update

President Petroleum (AIM: PPC), the oil and gas exploration and production company with producing assets in the USA and exploration licences in Australia, provides the following operational update.

Australia

The Northumberland 2 well was a wild cat, high risk well. As such the results themselves whilst not showing commercial quantities of hydrocarbons are not seen by President as negative for the whole of the PEL 82 Licence nor a depletion of potential value of that Licence. 

To the contrary, the results are both intriguing and encouraging and President continues to analyse the data.

Louisiana

President is now taking steps to optimise the potential of its existing production base.

Positive production performance is now being achieved with an increased weighting of oil to gas as a result of East White Lake acquisition in 2010.

In this regard:

·; First of scheduled Proven Undeveloped ("PUD") opportunities increased oil production by 30%

·; Five further PUD opportunities have been identified collectively having the potential to materially increase production, and improve the bias to oil (over 50%)

·; Drilling of the first PUD has already commenced with up to four others due to commence sequentially over the next six months

·; Initial capital costs not material to substantial cash balances of PPC; average payback for each PUD is estimated at six months; will not impair PPC ability to pursue acquisitions

·; Majority of targets have long production profiles

·; NPV per barrel on the oil wells are estimated to be some $45 on an oil price of $100 WTI, a significantly higher value than previously expected

·; President is currently enjoying very beneficial relief from severance tax on some of its Louisiana production

·; The Company's substantial tax losses in Louisiana will not only shield the Group from corporate tax but allows the Group to consider acquisition of low risk production opportunities which can be exploited with greater bottom line impact

Peter Levine, Chairman of President Petroleum Company Holdings BV commented:

"The recent drilling in Australia highlighted the overall potential of PEL 82 and it would be premature to ignore the prospective value of this Block at this stage. For a first well on an unexplored licence the results were encouraging. Detailed analysis work continues and we will update investors in due course on our forward plans for PEL 82.

 The Group remains committed to using its strong cash position to achieve growth by acquisition, particularly of production or near production opportunities with material upside both on reserves and production itself.

 Active steps are also being taken to make the most of production upgrading and opportunities in our existing licences and elsewhere. The substantial tax losses will now be utilised as a tool to increase the bottom line benefit.

 Both myself and the main Board are committed to generate significant growth from our solid base."

For further information contact:

President Petroleum (AIM: PPC), is an oil and gas exploration and production company with onshore producing and exploration assets in Louisiana, USA and onshore exploration licences in South Australia. The PEL 82 licence in South Australia is 100% owned by President.

Dr Jonathan M Cohen, FGS, C Geol, Executive Vice President Exploration, 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.