TIDMPPC
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 137,000m(3) /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
M(3) /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 Raggett, Charlie Beeson +44 (0) 207 220 0500
Shore Capital (Corporate Broker)
Jerry Keen, Antonio Bossi +44 (0) 207 408 4090
Tavistock (Financial PR)
Nick Elwes, Simon 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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