President Energy PLC Argentina Workover and Group Production Update (8091M)
August 02 2017 - 2:00AM
UK Regulatory
TIDMPPC
RNS Number : 8091M
President Energy PLC
02 August 2017
2 August 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Puesto Guardian Concession Workover and Group Production
Update
Well PG-19 coming back into production after 19 years
President Energy (AIM: PPC), the upstream oil and gas company,
provides an update on its continued work-over programme at its
Puesto Guardian Concession, Argentina ("the Concession") together
with an update on Group production.
Workover Programme
Since the Company's last update on 17 July 2017, President has
successfully completed the workover of Well PG-19 at the Puesto
Guardian Field.
PG-19, originally drilled in 1983, had been shut in for the last
19 years, by which time it already had produced 450,000 barrels of
oil.
The workover included cleaning out the bottom hole section and
perforating a previously ignored section of the producing
Cretacious formation followed by an acid stimulation.
Both before and after the stimulation, successful swabbing
produced light oil to surface, commensurate in quality with that
produced in the Puesto Guardian Field. Immediately prior to
cessation of swabbing, the well, cleaning up with impurities still
present from the stimulation, had reached over 10% oil cut. A photo
of the oil/water sample is posted on President's Twitter feed.
Prior to the shut-in 19 years ago, the oil cut of PG-19 was
25%.
After a downhole jet pump is installed, work will commence to
hook the well up to the Puesto Guardian battery. Taking into
account the well history and whilst it is too early to be
definitive, on the basis of historical information and up to date
pressure data, by way example, an initial conservative gross fluid
rate of 500-750 barrels per day would deliver 50-75bopd at a 10%
oil cut.
The Workover Rig will then move to Well PG-20 in the Puesto
Guardian Field, a well that was originally drilled in 1985, shut in
from 2002, having produced a total of 650,000 barrels of oil in
that period.
Group Production
Argentina
Argentinian production is currently limited by the significant
ongoing infrastructure works at the Concession including installing
five new surface pumps, photographs of two of which can now be seen
on the Company's Twitter feed, lifting and cleaning out of existing
downhole pumps, laying of production lines prior to hooking up new
producing wells and the commissioning of two new water disposal
wells to handle increased water generation arising from the new
production wells. All these works are expected to be completed
during September.
Accordingly, with the workover programme still continuing,
whilst production is presently constrained to a maximum of
approximately 600 bopd President intends to bring on stream an
additional four producing wells during September with a further
three wells, which are currently working at sub-optimal capacity,
brought up to full volume within that same time period and a three
well stimulation campaign also slated for that month.
Louisiana
After a prolonged period of shut-in due to heavy rains causing
dangerously high water levels preventing offtake of oil by barges,
production has now come back up to pre-shut in levels of 300 boepd
net to President, with the most recent acquisition, Triche well,
contributing comfortably in line with the expectations at the time
of purchase.
Peter Levine, Chairman and Chief Executive, commented:
"It is good to see our producing well-stock further extended and
we look forward to seeing PG-19 on stream.
Despite the challenges we have faced of working over old wells
with a variety of foreseen and unforeseen downhole issues, this
workover campaign has so far lasted 160 days of back to back
seamlessly continuous work, without break or let up.
In that time and continuing even now, we have learned many
things and operating teamwork and experience has been developed,
not just internally, but also in conjunction with our main
contractors. This capability is of significance as we move on to
actively consider acquisitions of producing assets in the core
heartlands of hydrocarbon production in Argentina".
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil equivalent
This announcement is inside information for the purposes of
article 7 of Regulation 596/2014
Contact:
President Energy PLC
Peter Levine, Miles Biggins +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, Neil Haycock +44 (0) 207 236
and Tom Rider 1010
Vigo Communications
Chris McMahon, Patrick d'Ancona +44 (0) 207 830 9700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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