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Newly acquired field producing more cash than expected

Latin American oil and gas play President Energy (PPC:AIM) is generating more cash than expected from its recently acquired Puesto Flores field in Argentina.

A combination of higher oil prices and a low-risk approach to expanding Argentinian production makes President’s shares look an attractive investment proposition.

At 11p the shares are up nearly 60% since we flagged them in April 2017; and we think they’ve got much further to travel.

President says Puesto Flores, acquired in September 2017 along with the neighbouring and currently shutdown Estancia Vieja field, is benefiting from a realised oil price upwards of $60 per barrel and the improving production profile.

In January President is expected to generate $4.5m from its share of output in Argentina.

The company’s 2018 work programme, which is fully funded from existing resources and this cash flow, includes testing on Estancia Vieja, action to lift output from existing wells on Puesto Flores,
and development/appraisal drilling in the second half of the year.

President chairman and chief executive Peter Levine comments: ‘With all our concessions in Argentina and Louisiana making profitable contributions we continue to focus on growth in shareholder value both organically and through the right acquisitions whilst maintaining our core emphasis on positive cash and margins.’


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