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President Energy PLC (PPC)

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Thursday 22 November, 2018

President Energy PLC

Argentina Update

RNS Number : 1302I
President Energy PLC
22 November 2018
 

22 November 2018

 

PRESIDENT ENERGY PLC

("President", "the Company" or "the Group")

 

Argentina Update

The first drilled well now flowing at 600 bopd

Second well successfully logged, cased and cemented

 

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update on its drilling programme at the Puesto Flores/Estancia Vieja Concession, Rio Negro Province, Argentina (90% President and operator and 10% EDHIPSA, the Provincial energy company).

 

Highlights

 

·   PFO 1001, the first newly drilled well now tied in and flowing from the Punta Rosada primary target formation at 600 bopd

·     The secondary Pre Cuyo target, 200 metres lower down in the well which flowed at 240 bopd, has been temporarily isolated and kept in reserve to produce at a later date

·    PFE 1001, the second new well, has been successfully cased showing total net oil pay of 43 metres in aggregate over both primary and secondary targets

·     Testing of the second well to commence next week

·     The drilling rig will be moved next week to drill the third and final well in this year's program, PFO-1005

 

New well PFO 1001

PFO 1001, the vertical well is now tied in and producing to the battery at the rate of 600 bopd from the primary target, the Punta Rosada formation with zero water cut, having been choked back from an initial equivalent peak flow rate of over 1,000 bopd for prudent reservoir management. The oil quality is commensurate with that of oil produced from other wells in the  Puesto Flores field. The secondary target Pre Cuyo interval, 200 metres deeper which flowed at 240 bopd has been temporarily isolated and is being kept in reserve to be brought on production at a later date.

 

Taking into account the prolific production from the Punta Rosada, as indicated previously, production from the two formations will not be co-mingled.

 

PFE 1001

This directional well having been successfully drilled on plan, time and budget to the target depth of 2,550 metres has now been electronically logged and cased.

 

The logs show 17 metres of net pay in the Punta Rosada primary target and 26 metres of net pay in the Pre Cuyo formation with good porosities of between 15% and 25%.

 

The well has been cased and cemented, and the drilling rig is now being prepared to move to the third and final location in this year's drilling campaign, PFO 1005. The workover rig will be moved onto the well in the next week to test and complete the well and put it on production.

 

At the present time President maintains its guidance as to approximately 200 bopd targeted production from the second and third wells in the programme.

 

Peter Levine, Chairman and Chief Executive commented:

"President's progress continues with the results from the first well speaking far more eloquently than any words that can be written.

 

"Every well is different and accordingly it is important to manage expectations and retain our original targets for the second and third wells in the series." 

 

 

Glossary

Bopd- barrels of oil per day

 

Victor Linari, Master in Geology and Member of the Society of Exploration Geophysicists, who meets the criteria for qualified persons under the AIM guidance note for mining and gas companies, has reviewed and approved the technical information contained in this announcement.

 

Contact:

 

President Energy PLC

Peter Levine, Chairman, Chief Executive

Rob Shepherd, Group FD

 

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor & Joint Broker)

Christopher Raggett, Scott Mathieson

 

 

+44 (0) 207 220 0573

BMO Capital Markets (Joint Broker)

Jeremy Low, Tom Rider

 

 

 +44 (0) 207 236 1010

 

Camarco Financial PR

Billy Clegg, Jane Glover, Violet Wilson

 

+44 (0) 203 757 4980

 

 

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 in Argentina, with a diverse portfolio of operated onshore producing and exploration assets. The Company currently has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 27 MMboe.

 

The Company has operated interests in the Puesto Flores and Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company is focused on growing production in the near term in 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.

 

President is 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 IFC, part of the World Bank) and an in-country management team, President Energy gives UK investors rare access to the Argentinian 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

 

 


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