15 September 2020
PRESIDENT ENERGY PLC
("President" or the "Company")
President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in Argentina provides an operational update in relation to its current Rio Negro operations in the Estancia Vieja and Puesto Flores fields.
The operational testing of EVx-1 has now concluded.
The flow rates and pressure build up support the initial testing results and that this has proved to be excellent value for the US$250k expended in working over an old, uneconomic well. The well tested on various choke sizes from 4mm to 12mm for 12 hours each with similar pressure build up tests at 12 hour intervals. Throughout, the well maintained good pressure with production rates ranging from 25,000m3/d up to 150,000m3/d of gas with a small amount of condensate. For good reservoir management, subject to the definitive data results, it is expected that the well will be put on stream initially producing approximately 80,000m3/d of gas (+/-470 boepd). The data obtained from the testing is now being analysed to determine the producible volume of the reservoir and its characteristics.
The Company looks forward to seeing the contribution in production from this well from October.
The order in respect of the second well in the workover sequence was changed due to logistics. This well, the old PFO-33, has been turned into a water disposal well replacing a previous disposal well PFO-17 which ceased to be operable some three months ago. PFO-33 is now capable of disposing of 400m3/d of water thereby saving on third party costs which have been incurred since the previous well ceased to inject. The workover of this well has been completed ahead of time and like EVx-1, under budget.
After completing the workover of PFO-33, the rig then moved on to the oil producer PFE-1001 to replace an electric submersible pump which had failed approximately two months ago and then put the well back on production. That operation is now nearly completed and has gone according to plan. The well should be back online in the next 7-10 days.
The rig will then move on to the next wells in the sequence which will include the well EV-20 referred to in the Company's announcement of 13 July 2020. Further details of progress on the programme will be announced at relevant times.
The drilling rig is now expected to start mobilising during the course of this week for drilling operations to commence on schedule before the end of September.
As previously announced, the first well will be the Las Bases 1001 development well targeting attic gas in the Las Bases structure, a P50 well rate of 100,000 m3/day (588 boepd) of gas and 6 Bcf of recoverable gas with a target depth of 1,700 metres and a high chance of success.
Estimated costs to completion are US$1.9 million with drilling time, excluding completion and tie-in, of approximately 21 days. As the well is in close proximity to existing infrastructure, on a success case the well should be in production at some stage during November.
Boepd means barrels of oil equivalent (oil and gas) per day
M3/d means cubic metres of production of gas or oil as the case may be
President Energy PLC
Rob Shepherd, Group FD
Nikita Levine, Investor Relations
+44 (0) 207 016 7950
finnCap (Nominated Advisor)
Christopher Raggett, Charlie Beeson
+44 (0) 207 220 0500
Shore Capital (Corporate Broker)
Jerry Keen, Antonio Bossi
+44 (0) 207 408 4090
Tavistock (Financial PR)
Nick Elwes, Simon Hudson
+44 (0) 207 920 3150
Notes to Editors
President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused on Argentina, with a diverse portfolio of operated onshore producing and exploration assets.
The Company has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions, and Angostura exploration contract, all of which are situated in the Rio Negro Province in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.
The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors access to the Argentina energy growth story combined with world class standards of corporate governance, environmental and social responsibility.
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014