StockMarketWire.com - President Energy said it had deferred its 2019 drilling campaign in Argentina after the government introduced caps on fuel prices.
The government decree, effective for 90 days, involved fixing the peso-to-dollar exchange rate at 45.19-to-1 when payment for oil was made by offtakers, while the reference price of Brent crude was fixed at $59 per barrel.
President said it had deferred this year's drilling campaign in favour of greater near-term emphasis on progressing and expanding its existing gas project.
The prices for gas were not directly affected by the decree, it added.
Well drilling was now expected to commence in the first quarter of 2020, with an initial emphasis on new gas wells.
President said that if the decree survives court challenges from oil producers and some local authorities, it would continue to be a profitable company.
'This is thanks to the group's focus on opex and cash management as well as its ability to adapt quickly to the prevailing circumstances, pivoting where appropriate,' it said.
'The company is focussed on high-margin production rather than production for its own sake.'
At 8:18am: [LON:PPC] President Energy Plc share price was -0.75p at 5.5p
Story provided by StockMarketWire.com
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