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President Energy PLC - Operational Update

RNS Number : 8724X
President Energy PLC
03 September 2020
 

 

 

3 September 2020

 

PRESIDENT ENERGY PLC

("President" or the "Company")

 

 Operational Update

 

President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in Argentina provides an operational update on the results of its first well workover in the current programme at the Company's Rio Negro fields.

 

Highlights

         Workover of first well, EV-x1 completed on time and ahead of budget

         Excellent preliminary gas flow and pressure tests

         Well now shut-in and workover rig will be moved off to next well in programme

         Five days of further testing will take place and well should be on line by end September  

 

Well EV-x1, Estancia Vieja Field, Rio Negro Province,Argentina 

The first well workover in the previously announced programme in the Company's Rio Negro fields, being EV-x1 in the Estancia Vieja field (President 90%, Edhipsa 10%), has now been completed.

 

The cost has come in some 10% below budget excluding contingencies at approximately US$250k in total and has been completed on time.

 

Preliminary results both as to flow and pressure are excellent and materially above the Company's P10 scenario.

 

The workover of this shut-in well comprised the plugging of the lower previously oil producing section and the perforating of the Vaca Muerta and Catriel formations which in this well had never been placed on production and for which only a negligible amount of reserves are currently included in President's independent audited reserves.

 

Under test with the workover rig, the well on conclusion of the preliminary test was flowing gas at a rate of approximately 6.3MMscft/d being 137,000m3/d the equivalent of 1,050 boepd with downhole pressure robust at 1,300 psi and a 12mm choke with no water.

 

The well has now been shut in, the rig will be moved off and then a five day test period will commence including the important pressure build up tests. This testing is crucial to determine the produceability of the well over time and extent of the pool of gas possible to produce.

 

Whilst testing with a workover rig is not an exact science and final initial production, figures on production will, subject to testing, normally be expected to show a reduction on the above figures, the results are in any event very encouraging even allowing for an appropriate margin of error and adjustment therefor.

 

As the well is only some 250 metres from relevant facilities, placing the well on production will be at a nominal cost and subject to the above the well is projected to be on stream by the end of September.

 

The rig will now be moved to the next well in the programme. The successful flow and pressure rates could indicate a number of interesting read across possibilities with regard to other wells and locations. It is however premature to speculate and President, whilst starting this necessary homework, is very much approaching this programme as one well at a time.

 

Peter Levine, Chairman, commented

"This is an encouraging preliminary start at a reasonable cost and subject to satisfactory testing underpins what we have been saying for a long time as to the gas potential in Estancia Vieja.

 

"It is important however to bear in mind that we have the two well drilling programme to come as well as progressing the workover programme, as announced, with drilling on track to commence by the end of this month.

 

"So, we thus progress, well by well".

 

Glossary:

Boepd means barrels of oil equivalent (oil and gas) per day

M3/d means cubic metres of gas as the per day 

MMscft/d means millions of cubic feet of gas per day

 

 

 

Contact:

President Energy PLC

Peter Levine, Chairman

Rob Shepherd, Group FD

Nikita Levine, Investor Relations

 

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor)

Christopher RaggettCharlie Beeson

+44 (0) 207 220 0500

 

Shore Capital (Corporate Broker)

Jerry Keen, Antonio Bossi

 

 

+44 (0) 207 408 4090

Tavistock (Financial PR)

Nick ElwesSimon 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 in 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 IFC, part of the World Bank Group as well as 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

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