President Energy (PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in Argentina provides an update on sales of oil from its Rio Negro fields in Argentina and guidance on H2 Average Group production.
Export of Oil
Since commencing production in Argentina, President has sold all its oil exclusively in the country at the prevailing domestic price. Now, for the first time, President is exporting some of its oil.
After receiving regulatory consents, President, with the assistance of Trafigura, will export approximately 18,000 barrels of oil by the end of July, with the balance of the Company's production being sold domestically. The value achieved for the exported quantity is projected to be in line with current ICE Brent pricing less US$6. The domestic price for President's Rio Negro July production is US$ 37.54 per barrel, not yet at the US$45 Government Decree level due to demand side factors in Argentina.
Having navigated regulatory mechanisms in relation to this first pathfinder export load, in the coming months further oil exports are expected to follow, always depending on demand factors, thus providing President with another string to its bow for sales of product to end markets.
Group production guidance
President is currently projecting Group average production for H2 2020 in the range 3,000-3,400 boepd, an increase of approximately 30% over the same period last year. The estimated increases in production from the two workovers scheduled to commence by end of August and two new wells scheduled to commence by end of September will only be felt in the latter part of this half year. Of the Group's average production in H2, it is currently anticipated that oil will compromise some 60% of the total.