RNS Number : 3115A
President Petroleum Company PLC
29 March 2012
29 March 2012
PRESIDENT PETROLEUM COMPANY PLC
("President" or "the Company")
Drilling Update: DP-1001 Well - Dos Puntitas Field
Successful results substantially ahead of expectations
Further to the Company's announcement on 19 March 2012, President is pleased to announce that Well DP-1001 has been logged and preliminary evaluation demonstrates that the well has been very successful and substantially above expectations.
The well has found the Oil Water Contact at or near its original level and combined with a well location in a structurally high position, DP-1001 has encountered an oil column substantially longer than expected. The log demonstrates a gross oil column of 54 metres at a depth of between 3115 -3169 metres with a net pay of 33 metres. In addition, rock properties and hydrocarbon saturations are seen to be at the high end of the pre-drill range.
President will test three reservoir intervals, all of which appear capable of primary production not requiring fraccing or artificial stimulation. The deeper two zones are A5 and A6 sandstones, themselves capable of initial flow rates well in excess of the pre-drill prediction of 380 bopd post frac for the whole well. The upper Limestone interval is also expected to contribute to immediate production, and has historically produced in the Dos Puntitas Field. Accordingly, President is confident that the pre drill production prediction will be materially exceeded without the need for fraccing. The same Limestone interval has already been identified as containing significant, additional new oil in place elsewhere in the Puesto Guardian Concession. Two new cores have been cut in the DP- 1001 well to examine rock properties and hydrocarbon saturation. The cores are the first to be cut for 25 years and combined with the new logs they show that the Limestone interval has good matrix porosity, expected to be capable of un-stimulated commercial flow rates. The new logs and cores have provided valuable new information to optimize reservoir models and help maximise recovery factors and flow rates.
Testing of the well is expected to commence within the next few days, and will be brought into production during April.
A location has been chosen for the third well (DP-1002) of the 2012 five well programme, which demonstrates the same characteristics as DP-1001. This third well is expected to be spudded within the next 14 days.
Richard Hubbard, President Chief Operating Officer commented, "Initial results from the DP-1001 well leave President confident to test and complete multiple intervals and place the well on production without any need for prior fraccing as had been the original expectation."
Commenting on today's announcement, Peter Levine, Chairman of President Petroleum Company Holdings BV said:
"The results of DP-1001 are extremely encouraging and we are looking forward to materially increasing production as a result of this new well. We view the future with increasing confidence as we continue to plan both for new wells and the upcoming frac campaign on old shut-in wells."
For further information contact:
President Petroleum Company
John Hamilton, Interim Chairman +44 (0) 207 811 0140
Ben Wilkinson, Finance Director +44 (0) 207 811 0140
RBC Capital Markets
Jeremy Low, Stephen Foss, Matthew Coakes +44 (0) 207 653 4000
Jefferies Hoare Govett
Simon Hardy, Max Jones +44 (0) 207 029 8316
Pelham Bell Pottinger +44 (0) 207 861 3232
James Henderson, Mark Antelme
Dr Jonathan M Cohen, FGS, C Geol, Executive Vice President Exploration, meets the criteria of
qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed
and approved the technical information contained in this announcement.
This information is provided by RNS
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