President Energy (LSE:PPC) is an upstream oil and gas company with a diverse portfolio of production and exploration assets mainly located in Argentina, Paraguay and the USA.
President Energy was admitted to AIM in July 2004 (when the company was known as Meridian Petroleum Plc and subsequently, President Petroleum Plc). At the time of admission, the company raised £2.3 million in gross proceeds; it had 56 million ordinary shares in issue which implied a market capitalisation of £16.8 million
In September 2020, the company had c. 2.015 billion ordinary shares in issue and the share price was 1.55 pence giving a market value of c. £31 million.
Overview of the company’s assets
President Energy’s major assets include a 100% operating interest in the oil-producing Puesto Flores field and the Estancia Vieja concession as well as a 90% operating interest in two further concessions in the Rio Negro Province, Argentina.
The carrying value of its investment in these licences and concessions, including all exploration activities plus expenditure on development and production assets (property, plant & equipment) was US$ 109.8 million as at 31st December 2019.
The 2019 results included a write-down of US$ 39.9 million to the carrying value of the Puesto Guardian concession and a partial impairment of US$48.5 million on the Pirity licence.
According to the latest investor presentation, released on 22nd July 2020, the company has independently certified 1P (proved) reserves of 15.6 million barrels of oil (MMBOE); 2P (proved and probable) reserves of 26.4 MMBOE; and significant exploration upside potential of 43.5 MMBOE.
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