Page 15 - LatAmOil Week 07 2022

LatAmOil NEWS IN BRIEF LatAmOil

Final GeoStreamer X products will be available through the spin out and IPO of Atome Energy to the prior year: Original Oil in Place (OOIP):
in August 2022. and successfully, notwithstanding the pandemic, Increases of 5%, 7%, and 7% to 247, 389, and
PGS, February 15 2022 farmed out our Paraguay exploration prospect 618mn barrels, respectively, for the 1P, 2P and
to the state energy company of Taiwan. It is 3P cases;
President Energy important to ensure that going forward we leave additional subsurface data, 1P, 2P and 3P total
Due to continued drilling success and
no stone unturned to achieve optimum perfor-
announces key trading mance and delivery for our capital expenditure. booked well counts for 2021 are 17, 22, and 29,
“With one new well in Salta on stream and respectively, up materially from the 2020 well
highlights for 2021 still stabilising, the second to be online at the counts of 11, 15, and 20; and With additional
end of this week and the third to be drilled subsurface similarities to Bretaña’s analogous
AIM-listed President Energy, the energy com- this month, Salta commercial oil production is fields now recognized, all three recovery fac-
pany with a diverse portfolio of production and already increasing and is expected to continue as tor percentages materially increased in 2021
exploration energy assets currently focused pri- the other new wells come on. The waterflood sec- to 18% (from 11%), 22% (from 15%), and 25%
marily in South America, has announced unau- ondary recovery project in Rio Negro scheduled (from 19%) for 1P, 2P, and 3P reserve categories,
dited 2021 trading highlights together with an to start within 6 months is very promising for respectively.
updated Argentine reserves report as at Decem- both stabilising natural decline and increasing 2P Future Development Capital (FDC)
ber 31, 2021. the amount of recoverable oil. Work is progress- increased $96mn or 49% to $289mn from 2020
2021 Unaudited Trading Highlights: Turno- ing to prepare for the high impact exploration reflecting an additional 7 wells booked at year-
ver of approximately $34.2mn, without any con- well in Paraguay to be drilled this year targeting, end 2021 and the required associated water dis-
sistent contribution from the Louisiana assets; based on internal estimates, 230mn barrels of posal capacity needed to accommodate higher
Average Group production of 2,473 boepd unrisked oil in place. We therefore look forward anticipated flush and run rate production
(2020: 2,714 boepd) with no material contri- to an improved performance this year with regu- volumes;
bution from Louisiana; Estimated adjusted lar newsflow keeping the market updated.” 2021 Finding and Development (F&D) cost
EBITDA in Argentina of $9.5mn (calculated on President Energy, February 14 2022 per barrel of $6.63, $4.68 and $3.85 for 1P, 2P,
the basis of Group financial reporting); $14.5mn and 3P reserve categories, respectively. The 1P
of free cash generation from operations (after PetroTal reports significant and 2P per barrel costs were reduced 42%, and
workovers) and treasury income; Group results 6% from year-end 2020;
are expected to include a benefit of $13mn to the increases in oil reserves Attractive year-end 2021 reserves-based met-
profit and loss account arising from the spin out rics: Doubling 2021 Reserve Life Index (RLI)
of Atome Energy PLC and dividend distribution as of year-end 2021 for 1P and 2P reserves, to 13.8 and 28.9 years,
to shareholders of President, which represented respectively, compared to 6.4 and 14.6 years
a yield of approximately 20%; The Company PetroTal has announced the results of its 2021 in 2020; and Robust 2021 production reserve
retains a 27.9% holding in Atome Energy PLC year-end reserve evaluation by Netherland, replacement ratios of 457% and 816% for 1P and
which at December 31 had a market value of Sewell & Associates, Inc. (NSAI) for the Bretaña 2P reserves.
$9.8mn. oilfield, operated 100% by PetroTal. All currency On a 2P per barrel basis, the NSAI Report
Argentine Reserves as at December 31, 2021: amounts are in United States dollars (unless oth- reflected a 3.5% decrease in operating costs per
President’s 2P reserves in Argentina as at year- erwise stated) and comparisons refer to Decem- barrel, which, given the inflationary pressures
end have been assessed at a robust 24.4mn boe. ber 31, 2020. from higher Brent oil prices and the COVID-
Argentina reserves and contingent resources Highlights, Significant increases in all reserve 19 pandemic, is an important success story for
have been independently certified according categories: Proved (1P) reserves increasing by PetroTal; and On a 3P basis, the 2021 NSAI pro-
to Argentinian Law as at December 31, 2021, 68% to 37.4mn barrels. Net Present Value (before duction forecast shows a 16-year plateau above
after taking into account production in the year. tax, discounted at 10%, or NPV-10) is $724mn 10,000 barrels per day (bpd) of oil instead of the
Group net 2P Reserves of over 24mn boe lim- ($19.38 per barrel) for 1P reserves; Proved plus prior 12-year plateau in NSAI’s 2020 reserves
ited to current life remaining of concessions tak- Probable (2P) reserves increasing by 53% to report.
ing no account of any future extension of such 78mn barrels. Net Present Value (before tax, dis- Manuel Pablo Zuniga-Pflucker, President
contracts. Significant contingent resources in counted at 10% (NPV-10) is $1.39bn ($17.82 per and CEO, commented: “The Bretaña field is
producing areas awaiting conversion to reserves barrel) for 2P reserves; and Proved plus Probable proving itself to be a prolific investment given
after contract terms are prolonged. The reserves plus Possible (3P) reserves increasing by 39% to the significant achievements in 2021 and the
reported exclude the internally estimated Para- 147mn barrels. 2021 year-end reserves report results. Based on
guay exploration PMean of 536mn boe unrisked NPV-10 values have increased 129% for the increased recovery factors and additional
oil-in-place that are in addition to the figures 1P and 67% for 2P, over year-end 2020, due to booked drilling locations, we have significantly
reported today; drilling of a complex estimated reserves growth and an increase in the Brent extended the running room and future develop-
to contain 230mn boe of that total will be under- price forecast used by NSAI at year-end 2021; ment potential of our asset. This should allow
taken in 2022 in a joint venture with CPC, the Material progression of after-tax NPV-10 per Bretaña to generate free cash flow for a much
state energy company of Taiwan. share to $0.69/share, $1.23/share, and $2.00/ longer period of time.”
Peter Levine, Chairman, commented: share for 1P, 2P, and 3P categories; 2021 Proved PetroTal, February 15 2022
“Whilst trading in 2021 was solid, despite the Developed Producing (PDP) reserves increased
static production taking into account the loss in 35% to 16.15mn barrels, representing 43% of
all material respects of Louisiana’s contribution 1P reserves, reflecting an attractive ratio of base
in the year, we still showed a healthy, operation- production to low risk drilling targets;
ally profitable business. On a strategic level, we Three key reserves parameters had material
produced material returns for our shareholders positive upgrades in the NSAI Report, compared

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