President Energy upbeat on fracking results from Puesto Flores
Argentina-focussed upstream oil and gas company President Energy updated the market on its fracking operations at the Puesto Flores field in Rio Negro province on Tuesday.
The AIM-traded firm had recently conducted a trial hydraulic fracturing of well PFO-16 in the field, with the interval selected for fracking being the Precuyo formation, which it said was “tighter” than the Punta Rosada in Puesto Flores, although the former was also present and producing whether on its own or co-mingled in four wells in Puesto Flores.
As far as President said it was aware, that was the first time that any fracking operation had taken place in the Puesto Flores field addressing the Precuyo formation.
Drilled in March 2012, PFO-16 was one of wells in the field producing solely from the Precuyo and, immediately prior to the fracture, was producing at a “modest” rate of eight cubic metres net oil per day, or around 50 barrels.
It was chosen as the trial fracking candidate due to the low production rate and perceived lack of proximity to substantial water bearing zones.
The company said the fracking operation was completed successfully, with more than 100,000 pounds, or 45 tonnes, of proppant going into the formation.
Flowback and testing operations were currently ongoing to clean out the well.
President reported that so far, the fracture had proved to be at the high end of initial expectations.
In the production testing that was taking place, the oil cut, which is net oil to total volume of liquids recovered, was a “very good” 95%, and while it was a depleted reservoir, the daily test rate of oil production at 28 cubic metres, or around 175 barrels per day, was three times greater than the pre-fracture level.
The well, still not fully cleaned up after the fracture, would be monitored for a month as a more prolonged period of time was needed to develop a more precise forward-looking view as to the likely post-fracture behaviour of the formation operation and decline rates.
It was still a “most positive outcome” so far for President's first fracture, the board quipped, with potentially a materially-positive read across to other similar wells drilled and to be drilled.
With those preliminary results, the company said it had now started planning for other fracture candidates in existing wells across its Rio Negro assets, where the Precuyo was either at virgin or at a less-depleted pressure than was encountered in PFO-16.
In such instances, all other things being equal, the production rates post-fracture of such candidates would reasonably be expected to be “significantly higher” than in a depleted reservoir such as at PFO-16.
President said that, in the event that such a fracking programme was implemented, it was anticipated it would take place during this year, subject to equipment availability.
The potential for enhancing production by fracking would also be taken into account as appropriate in the forthcoming programme of new wells in Rio Negro.
“The [fracture] results to date are very good,” said President Energy chairman Peter Levine.
“This is all part of a lot of our work in the first half, namely developing a greater understanding of our Rio Negro reservoirs with the objective of finding ways to optimise production, mitigate decline rates and prolong economic field life.
“Whilst it is still a matter of step by step, we are most encouraged by what we are seeing so far from this trial frac, which has the potential to open a new front in extracting greater value from our fields.”