President Energy Plc announced that a letter of intent has now been entered into for a rig to drill the 2014 exploration programme. The contractor is Queiroz Galvão Óleo e Gás. Mobilization from Brazil is due to commence during February 2014 and is estimated to take two months, with the first well scheduled to spud, weather permitting, during May 2014. Preparations for drilling continue and are on track.

Civil works at two well locations are advanced with drilling pads being prepared. Seismic Survey results of the extensive seismic programme are still being analyzed. Due to the increased amount of seismic data acquired, the final results are now expected during the course of January.

The information to date supports the previously announced views of the two major structural play fairways identified and the gross risked prospective resource potential of in excess of 500 mmboe as a realistic possibility. An updated independent audit by RPS is also expected to be announced by the end of January. As a result of the frac campaign (excluding PE-8) gross field production has stabilized at 415bopd, an increase of 40%.

With the well performance data now observed, the company is confident that the frac campaign has proved successful and sufficient production data are now available to commence a reserves update. Whilst technical problems have hindered PE-8, this does not detract from the successful proof of concept of commercial, hydraulic stimulation in Puesto Guardian. PE-7: after four months of production, the well continues to perform strongly and is free flowing without further decline into the facility on a 45/64 inch choke with an average month four rate of 185 gross barrels of fluid per day, with 73% oil. DP-1001: after seven months of production, the well continues to free flow without further decline into the facility on a 9/16 inch choke with an average month seven rate of 110 gross barrels of fluid per day, with 66% oil; PE-8: after hydraulic stimulation of the carbonate interval, an inflow test was commenced with a W1 of approximately 340 gross barrels of fluid per day and after three days of clean-up reached 15% oil.

A workover was carried out to open the A6 interval and install a beam pump. Production re-commenced at 200 gross barrels of fluid per day (10% oil) on November 11, however the pump performance continued to drop off over three weeks before failing. This is most likely due to seal damage from some low level of sand production.

The well is currently shut-in awaiting a pulling operation to change the pump seals. Louisiana: production remains strong. While December volumes will be lower due to routine field maintenance at both EWL and ELV, as well as cold weather, average monthly production has been approximately 250 boepd for the past 3 months.

In the first half of 2014, President and its partners intend to drill two new exploration wells.