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 new well programme at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina (President 90% and operator – Edhipsa 10%).
President confirms that the PFO 1001 development well at the Puesto Flores field has now been spudded and is drilling ahead. PF1001 is the first well in the previously announced new three well development drilling programme at the Puesto Flores field.
Each of these wells will take approximately 21 days to drill, will be completed by a workover rig and then tied in to President’s existing battery. All three wells are targeting existing 2P (probable) oil reserves which on success would convert certain of these into the 1P (proven) reserves category.
All the wells are anticipated to be on stream before the end of the year with the target of this drilling campaign to add an additional 600 bopd to year end 2018 field exit production.
The AFE (authority for expenditure) for the three wells show a total cost of the three wells of US$10 million with a payback of 12 months. The costs, as previously stated, are being met out of President’s own financial resources.
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.
One of President Energy’s largest shareholders is the IFC, part of the World Bank Group and 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 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.
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