Results for the year to 31 December 2010

28th April, 2011

PRESIDENT PETROLEUM COMPANY PLC

("President" or "the Company")

Results for the year to 31 December 2010

President Petroleum (AIM : PPC), the oil and gas exploration and production company with producing assets in the USA and exploration licences in Australia, announces its audited results for the year ended 31 December 2010.

CORPORATE HIGHLIGHTS

·; Acquisition of 25% working interest in East White Lake providing well diversification and increased oil component of production

·; October 2010 share placing raised US$ 47.9 million net

·; Significant investment in exploration to test the potential of the legacy asset base

·; Drilled Kafoury 3 exploration well, East Lake Verret, Louisiana. Subsequently plugged and abandoned post year-end

·; Post year-end drilled Northumberland 2 exploration well, PEL 82, South Australia. Although not a commercial discovery, the presence of significant reservoir sands and hydrocarbons de-risks other prospects on the license

BOARD CHANGES

·; Stephen Gutteridge, Executive Chairman has tendered his resignation to pursue other opportunities

·; John Hamilton, Non-Executive Director, appointed as interim Chairman

OUTLOOK

·; Strategy to focus on disciplined acquisitions

·; Production optimisation programme underway in Louisiana

·; Continue to access low-risk accretive opportunities in Louisiana and take advantage of US tax losses

·; Evaluation of further prospectivity on PEL 82 license, South Australia, given the encouraging geological results from the Northumberland 2 well

FINANCIAL HIGHLIGHTS

·; Operating Cash Flow increased to US$0.7 million (2009: US$0.6 million)

·; Average net production of 185 boe/d

·; Cash balances at year-end of US$45.7 million (2009: US$10.1 million)

·; Loss after tax for the year of US$6.7 million (2009: US$4.4 million) reflecting higher depreciation charges

Commenting on today's announcement, John Hamilton, interim Chairman said:

"With a high-calibre team, that we will seek to strengthen further, and substantial net cash, President is well positioned to build on our increasingly profitable production base, continue our work on the PEL 82 licence in Australia and actively pursue business development opportunities. The Board would like to thank Stephen Gutteridge for his contribution since taking the Executive Chairman role in 2007, and wishes him the best for the future."

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.

The following financial statements are extracted from the Company's audited consolidated accounts for the year ended 31 December 2010. These accounts will be included in full in the Company's Annual Report which will be posted to shareholders in May 2011 and will be made available on the Company's website www.presidentpc.com at the same time.

Chairman's Statement

Summary

Following the November 2009 transformation of the Group, President's twin focus in 2010 was to prove up the potential value in the existing legacy assets in Louisiana, USA, and South Australia through drilling, and to add new assets through acquisition.

In January, the Group completed the acquisition of a 25% working interest in the East White Lake field in Louisiana and in August further deep drilling rights were acquired at President's existing East Lake Verret field.

The 2010 drilling and development plan for the legacy assets included two high-impact wells in Louisiana and South Australia respectively, and further low-cost drilling and work-overs at existing producing fields, with an emphasis on increasing oil production.

The schedule for drilling the deep Kafoury 3 well in Louisiana was contingent on the acquisition of the new leases and drilling commenced in November. A shortage of suitable drilling rigs in Australia impacted the timetable for drilling the Northumberland 2 well, but a contract was signed in August and the well spudded in March 2011.

In addition to the completed acquisitions in Louisiana, President evaluated a number of additional deals during the year but none met the Company's value criteria. Further acquisitions are anticipated and with increased spending commitments planned on drilling and development, the Company successfully raised US$50 million through a placing of shares in October. The placing was over-subscribed and well supported by Levine Capital Management, President's largest shareholder, and major UK institutions, both existing shareholders and new investors.

Financial Summary

2010 sales revenues, net of royalties, over-rides and other interests, increased by 11% to US$3.4 million. This was despite average 2010 production of 185 boe/day being lower than 2009, when production included the Orion field, which was sold in June 2009. The strong revenue performance was driven by the successful acquisition of East White Lake and a drilling and development plan focused on oil. Annual oil production increased by over 50% year-on-year and oil currently contributes 50% of production compared with 25% at the end of 2009. Better oil prices during the first half of the year helped boost revenue, whilst the oil production effect contributed to strong second half revenues of US$1.67 million, almost double 2009 levels.

The contribution to overheads from operations before depreciation increased by 6.5% to US$2.02 million while depreciation increased to reflect the re-appraisal of East Lake Verret reserves. Group overheads also rose as the Group utilised resources to assist in evaluating deal opportunities.

The October placing substantially increased the Group's year-end cash balances and net assets, to US$45.7 million and US$57.5 million respectively. This strong cash position will enable the Group to continue the work on its existing asset base and fund business development.

US Operations

Following President's acquisition of a 25% working interest in East White Lake, Peak Energy, the operator, drilled two successful development wells which increased President's share of production from 22 boe/day in January to a peak of 100 boe/day by the middle of the year. This increase, half of which was oil production, offset a decline in gas production at East Lake Verret. This decline was largely due to ever-increasing water production at the Kafoury 2 well, the largest producing well in the field. This decline is expected to continue in 2011 and as a result the Company has reduced its estimate of reserves for Kafoury 2 to reflect this.

The main upside identified at East Lake Verret was in deeper sands that were not current producers in the field but were significant producers in neighbouring fields. The deep rights to drill these prospects were acquired and the Kafoury 3 well was spudded in November. Kafoury 3 was drilled into a previously undrilled fault block and encountered significantly higher than expected pressures with complex geology and frequent high levels of background gas. Despite the challenging drilling conditions, President succeeded in completing and testing the well, but the test interval failed to produce commercial flows of gas. The drilling of Kafoury 3 took twice as long as anticipated with a corresponding increase in costs. At the year-end US$5.1 million of costs relating to Kafoury 3 were included in intangible assets.

There remains further potential in the Group's Louisiana fields, particularly at East White Lake where recent work and strong oil prices have encouraged a low cost drilling plan in 2011 targeting increased oil production which will benefit from a severance tax holiday and where any resulting profitability will be sheltered by President's US tax losses. Following the unsuccessful Kafoury 3 exploration well, President has reviewed its strategy for Louisiana and will limit further investment to low-risk activity that will provide immediate additions to production.

Australia Operations

The primary focus of President's Australian operations in 2010 was to spud the first exploration well, Northumberland 2, on the PEL 82 licence in South Australia. Whilst the geological, planning and regulatory aspects proceeded as planned, the shortage of suitable onshore drilling rigs and the cost of mobilisation to PEL 82 delayed the schedule. However, a contract for a drilling rig was signed in August, the well was spudded early in March 2011 and the results were announced in mid-April.

Whilst the well did not make a commercial discovery, the clear identification of hydrocarbons in the system, with a significantly thicker than expected Waarre reservoir sand, has given encouragement and impetus to move forward with further work on the licence. The results from Northumberland 2 have de-risked other prospects on PEL 82, particularly where we are able to identify structures with a complete and effective seal, and planning of the next steps in the exploration programme, potentially to include both seismic and drilling, is underway. The Board is of the view that, although non-commercial, Northumberland 2 may have enhanced the value proposition of PEL 82 both in terms of increased potential and reduction of risk.

An airborne gravity and magnetic survey was carried out on the Group's PEL 132 licence in South Australia and this has provided additional information to assist in the licence renewal and relinquishment process. PEL 132 is in a frontier area and it may be difficult to justify commercially significant additional expenditure in the near future.

Production and Reserves

Prospects

The drilling of President's legacy assets was an important step, but the key driver of the company's growth strategy remains our ability to create value through acquisition and development of new assets.

Our capability in this area has now been significantly strengthened through the creation of a corporate structure focused on acquisitions and the recruitment of a high calibre senior team to deliver them. Whilst a significant deal remained elusive in 2010, President is well-positioned and well-resourced, and remains confident that attractive new assets, scale and value can be delivered in a reasonable time-frame and will continue vigorously to pursue that goal. As the company embarks on a new chapter I have tendered my resignation as Executive Chairman. With the legacy assets having been financed and exploited, the Group is now in a solid position to move forward with its growth plans for new opportunities, maximising returns from existing producing assets, and further evaluating the interesting prospectivity on the PEL 82 licence in Australia. John Hamilton, one of our Non-Executives has kindly agreed to become interim Chairman.

Finally I would like to thank our shareholders, customers, partners, advisers and my colleagues for their support and contribution. I would like to welcome Ben Wilkinson, who joined the Board as Group Finance Director early in 2011 and to thank Chris Hopkinson and Angelo Baskaran, who have both stepped down from the Board.

Stephen Gutteridge

Chairman

27 April 2011

GLOSSARY

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes

1. Accounting policies and basis of preparation

The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31 December 2010 or 2009 but is derived from the 2010 accounts.

A copy of the statutory accounts for the year to 31 December 2009 has been delivered to the Registrar of Companies, and is also available on the Company's web site. Statutory accounts for 2010 will be delivered in due course. The auditors have reported on those accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2009 nor 2010.

Whilst the financial statements from which this preliminary announcement is derived have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the EU, this announcement does not itself contain sufficient information to comply with IFRS. The Annual Report, containing full financial statements that comply with IFRS, will be sent out to shareholders in May 2011.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore, in the preparation of the 2010 financial statements they continue to adopt the going concern basis.

2. Cost of Sales

3. Administrative expenses

4. Loss per share

At 31 December 2010, 1,175,000 potential ordinary shares in the company which underline the company's share option awards, and which may dilute earnings per share in the future, have not been included in the calculation of diluted earnings per share because they are anti-dilutive for the year to 31 December 2010.

5. Notes to the consolidated statement cash flows

6. Segmental Analysis