President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets provides an update in relation to its drilling operations in Rio Negro, Argentina.
• Well LB-1001 drilled down to the TD of 1,700 metres on time and on budget
• The well has now been logged and cased
•The logging results are in line with the anticipated probable pre-drill estimates for reserves and production potential (Targeted reserves of 6 Bcf and production of 100,000 m 3 /d being 588 boepd)
• The full suite of electrical logs and pressure point tests indicate net gas pay of 54 metres over six formations with overall good permeability and porosity
• The Rig is now moving to the next well with the workover rig due to come complete the well shortly
• Subject to successful testing the well is expected to be on production by the end of next month
The LB-1001 development well has now been drilled to the target depth of 1,700 metres. A full suite of open hole electronic logging has been performed and the well was then successfully cased and cemented. Costs for the well drilled, cased, completed and tested are expected to be within the US$1.9m budget.
The electronic logs indicate a total of 54 metres of net gas pay spread of 6 formations which are in line with pre-drill expectations and likewise in line with the offset former producing well of LB-x1.
The main formations of interest show generally good permeability and porosity with ranges from 15%-20%. The results so far therefore support the pre-drill probable (P50) expectations both as to initial gas production (100,000 m3/d being 588 boepd) and targeted reserves of 6 Bcf, but as always the key will be in the testing and reservoir performance under production conditions.
The drilling rig is now preparing to move to the previously announced exploration well EVN-1, whilst the workover rig is now being moved to LB-1001 for completion and readiness for testing. Subject to the latter proceeding satisfactorily it is expected that the well will be put on production by the end of November.
A further announcement regarding testing results will be made at the appropriate time.
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 shareholder base of support 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