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President Energy cuts reserves estimates, citing time limits on concessions
StockMarketWire.com
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Argentina-focused oil company President Energy downgraded its estimated reserves, citing production rates and diminishing time remaining on concessions that it hopes to extend.
Proven, or 1P, reserves at the end of December amounted to 14.0 million barrels of oil equivalent (BOE), down from 15.6 million BOE at the end of 2019.
Proven and probable, or 2P, reserves fell to 24.3 million BOE, down from 26.4 million BOE.
Proven, probable and possible, or 3P, reserves fell to 34.7 million BOE, down from 43.5 million BOE.
'The reduction in Argentine reserves year-on year-are reflective inter alia of the hydrocarbons produced in the relevant year, and critically the diminishing time remaining on the relevant concessions,' the company said.
It explained that the number of years remaining at each concession dictated and restricted the amount of reportable reserves.
'It is important to note that the reserves as at 31 December 2020 do not represent the total of what is present and/or recoverable in the respective fields but only rather what are present and/or recoverable over the term of President's current licenses as at the audit date,' executive chairman Peter Levine said.
'In practise, the company intends to exercise its legal right to extend its Rio Negro licenses beyond their current terms and therefore as is discussed the total present and/or recoverable reserves in the ground are materially higher.'
'We look forward to delivering on that potential in 2021, with a record actual and contingent work programme announced on 20 January, including a prospective return to drilling in Puesto Guardian.'
'This year's work is supported by more stable realisation prices in the markets we serve combined with both federal government and provincial investment incentives in Argentina.'
Story provided by StockMarketWire.com
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