How many wells are going to be drilled at Puesto Flores this year?
President drilled one new wells on Puesto Flores in September / October and will drill two more this year.
What production increases can we expect from these new wells?
While President doesn’t like to set production targets, the new wells at Puesto Flores will have a meaningful impact in increasing production and offsetting any decline at Puesto Flores. We have already stated we are aiming for 600 bopd extra field production from these three wells
Which quarter do you intend to drill Puesto Guardian?
Work on Puesto Guardian is progressing with drilling planned for next year.
Would finding a farming partner bring forward this date?
Bringing a partner into at least a part of Puesto Guardian is an avenue which President has looked at and the Group will always be amenable to interest from third parties.
How will gas at Estancia Vieja be monetised?
Gas as Estancia Vieja will initially be utilised for electricity that can be used to power the entire field. Additional volumes are expected to be sold via the infrastructure contained in the new concessions we are in the process of acquiring – Las Bases and Puesto Prado.
How much will the gas add to Group EBITDA?
President currently spends approximately US$100-120k/month on power at the Puesto Flores/Estancia Vieja field, the majority of which would be saved through utilising power generated from our gas production slated to commence at our around the end of February.
We will provide further guidance on additional gas sales via Las Bases and Puesto Prado in due course.
Paraguay drilling/ farm out
After the drilling failures in 2014, is there any prospectivity left in Paraguay?
Whilst elements of the 2014 drilling program were indeed disappointing, it was by no means a failure. In fact, two logged discoveries were made in the second well but structural issues down hole prevented testing. Since then, President has focused on derisking a number of cretaceous opportunities that are a continuation of the 50 mln bbl producing complex 30km across the border in Argentina and has never been drilled in a valid test. Recent geochemical and AVO studies over highgraded prospects support charge/migration and a well is planned targeting one such low risk prospect. In addition, a follow up well is being considered to properly demonstrate commercial flow from the previous discoveries made in 2014.
When will a well in Paraguay be drilled and where?
The Group is currently engaged in a farm out process with a view to achieving a beneficial agreement with a third party for its Paraguay assets although doing so will not impact plans to in any event drill during H2 2019.
The court case -Well DP1002
Are there any dates you can give us i.e. court hearing, submission dates?
Active arbitration processes are extremely confidential. And accordingly, it is not possible to give specific dates.
What is the likelihood of a positive outcome to President?
We are not looking here to make money. We feel that we’ve been wronged in both cases, and our starting point is that we feel that claims – that invoices levied against us are not warranted, and that is our starting point, then we go on to claim damages of course, but I would urge investors, and potential investors, not to come into this company or not to hold shares in our company simply as a bet on the result of the litigation. As with all litigation a pragmatic view is required
Board of Directors
Does the board feel that any additional directors are required, is there a policy for the composition of the board as expected by AIM?
Yes the Group feels with the recent appointments of Rob Shepherd as Group Financial Director and Alexander Moody-Stuart as an independent non-executive, the board now has independence, objectivity and a wealth of knowledge and experience.
Will you be able to provide a tabular schedule of monthly bopd, including $/bbl and ‘net backs’?
President is always looking at ways to clarify and refine the best way to report its figures and will bear this in mind when drafting results in future. However, we will not be issuing monthly figures as they give an unrepresentative view of field production which can ebb and flow
Will the company be commissioning a new CPR at any point and if yes when?
The Company currently plans to commission a new CPR, taking into account the new wells that are being drilled in Argentina, with an effective date of the end of the year is required under Argentine law. We, therefore, anticipate that the results will be published in Q1 2019.
What is the timeline?
At the moment it’s on hold. There’s a lot of preparation going on. Perspectives have been drafted, but there’s no point in doing this unless we have some form of vision as to where the Argentine stock market is going.
Will the company start to pay dividends, if so when?
The Company has made significant progress over the last year. Whilst the topic of payment of dividends is anticipated to be considered during H2 2019, at the present time it is sensible to apply our free cash flow in continuing to grow the company to a stage where meaningful, stable dividends can be paid without affecting our growth and proportionate to our financial resources and facilities at the relevant time.