President Energy (LSE: PPC) showed info of its paintings programme for 2019/2020 in an assertion on Monday. The company plans to spend around $50m on the application which it says it believes it can fund from existing cash flow. The agenda includes plans to drill 15 new wells and to carry out round 20 workovers
President’s operations are in large part focused on belongings in Argentina with it exiting 2018 with the production of around 3300 barrels of oil equal in line with the day (boepd). That figure represented year-on-12 months boom of more than 50pc and surpassed the organization’s original target of 3000 boepd. President’s purpose is to deliver an also 50pc increase in yr-on-yr production by way of the quiet of the 2019/2020 programme.
Over the next few months, the firm plans to complete as a minimum ten workovers in Puesto Flores Estancia Vieja, Puesto Prado, and Las Bases. A rig has been mobilized to the primary nicely location.
Renovation and commissioning of the oil remedy plant in Puesto Prado through the end of May will permit deliveries of oil from the sector at once to local refineries growing margins. The company will then cognizance on upgrading the gas plant in Las Bases to increase its capacity greater than ten-fold to 250k cubic meters of gasoline. President plans to drill round seven new production and appraisal wells within the 2d half of-one year. The organization can even fee a power era plant to electricity Puesto Flores from fuel at Estancia Vieja, promoting surplus power to the grid.
Next yr, President will drill eight further wells across Las Bases, Puesto Prado, Estancia Vieja, and Puesto Flores and around eight workovers. A 2d section of upgrading Las Bases is also planned in 2020, increasing its ability to 1,000,000 cubic meters of gas.
President’s percentage rate has been in decline seeing that the start of 2018 while it becomes around 12.5p. Today, the percentage charge is 7.25p equating to a Market Cap of round £eighty.5m.