President Energy, Pantheon Resources, Eco Atlantic

President Energy

President has announced the completion of the acquisition of interests in the Rio Negro Province in Argentina. The purchase price is $9.9m of which $8.7m was paid yesterday the rest to be paid in 12 months time from operational cash flow. This has been financed partly through an additional $4m bank facility and $4m additional loan from IYA, owned by Peter Levine.

The interests in Las Bases and Puesto Prado have P1 reserves of 1m barrels which the management believe can be ‘in the right circumstances’ be expanded by end 2019 to 4m barrels of 2P reserves. But the prize of this acquisition is not only the hydrocarbons but the extensive infrastructure facilities which include a 60km pipeline as well as its own tie and metering at the main regional pipeline. Not only does this open up PPC’s own Estancia  Vieja concession but gives income from CGC and in due course third party capacity from other neighbours.

Back to the hydrocarbons, the company is already working ‘expeditiously ‘ to bring into production certain wells that are currently shut in on the new concessions. This should, without being specific, add to both oil and gas production by the year end and will continue into Q1 2019. In addition to this, following testing, the gas from Estancia Vieja should be able to power the Puesto Prado facilities and wells by the end of the year and be followed by commercial sales in Q12019.

This deal is yet another smart deal for PPC, it provides upside for production and reserves whilst giving valuable infrastructure creating value from areas where there was little or none. What is more this is all happening virtually immediately and will create more value for shareholders in very short order. It is indeed ‘ an important strategic move’ and should be rewarded by long term value accrual in the share price.

Pantheon Resources

Better late than never Pantheon has brought on stream it’s VOS#1 well in Tyler County, onshore East Texas. Only 2,000 mcfpd but it will bring much needed but modest cash flow to the company.

Eco Atlantic

The company has completed the farm-out to Total and we can now expect activity in short order on the block. Maybe tomorrow’s Tullow Capital Markets Day might be worth a listen on this front… Regret that I don’t get an invite to this but will be watching for news.

 

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9 comments on “President Energy, Pantheon Resources, Eco Atlantic
  1. Laurence Petch says:

    Be good to have some comment on the Decimation of the SP in Sound Energy.
    Over promising and not delivering.

    • Malcy says:

      Hi Laurence
      As i see it, and as i have written it is a question of how to monetise Tendrara and drilling more wells is the only way. It is an exploration and development play, if you expect all the wells to come in you are probably having to great an expectation. You cant promise anything on drilling wells…
      Kind regards

      Malcy

  2. adain heavy says:

    Regret that I don’t get an invite to this
    Miaow…
    I wonder why not??

    • Malcy says:

      Hi Aidan

      Thanks for your comment, we haven’t seen each other for a while.

      It wasn’t a miaow moment really…. I used to get invited to everything but since you left I am off the list altogether. I have tried to get the IR people to keep in touch but I’m not on your mailing list and your IR people at Camarco have tried as well, as for the Capital Markets Day well I might as well whistle but then I only mainly now write for the retail shareholders in my blog which you obviously read…

      It’s not as if I don’t like Tullow, you say I wonder why, but so do I, what might I have done wrong?

      Thanks for getting in touch though, I think that Paul and the team are doing a great job.

      Kind regards

      Malcolm

      Wishing you all the best,

      Malcolm Graham-Wood
      Founding Partner

  3. Nick says:

    adain heavy sounds like a spoof!
    (Aidan Heavey is correct spelling)

  4. Nick says:

    Adain Heavy does not sound like the real deal:-

    Aidan Heavey

  5. Nick says:

    You didn’t miss much Malcy! Not a lot in Tullow’s CMD was new.

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