President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets focused primarily in South America, provides an operational update with regard to current operations in the Rio Negro Province,
· Well EV-1001 at the Estancia Vieja has now spudded ahead of schedule
· Petrophysical analysis of newly drilled well LB-1002 has increased net gas pay to 11 metres
· Successful workover at well LB-1001
Drilling programme Rio Negro
The new gas well EV-1001 at the Estancia Vieja field, Rio Negro, Argentina has now been spudded ahead of schedule. Drilling time excluding completion of the well but including logging and casing is estimated to be 12 days with a target depth of 1,850 metres. The well will twin the old well EVx-1 which was producing until a recent casing collapse. With an estimated cost of US$1.8 million, President projects initial production of 60,000 m3/d (2.1 MMsft/d or circa 350 boepd).
The completion of LB-1002 continues as planned, with the well to be on stream by the end of the month. Petrophysical analysis of this well has shown an increase in net gas pay to 11 metres (36 feet), over 4 metres (14 feet) more than originally considered.
Successful workover of LB-1001
The workover of the well LB-1001 in the Las Bases field, Rio Negro has now been successfully completed. The intra-Loma Montosa interval was perforated and under test with the workover rig producing little or no water and free flowing gas production in excess of 61,000 m3/d of gas (2.1 MMsft/d or circa 350 boepd). Clean-up is expected to continue through the early production stages. Downhole pressure was good and there is scope to increase the choke size gradually to increase production but under careful monitoring to mitigate coning (water ingress).
The rig has now moved off-site and the well will be placed on stream by the end of this coming weekend. When a frac unit comes into the field for the LB-1002 well completion the opportunity may be taken to hydraulically stimulate this well at or around the first week of May. It is considered that production levels of 80,000 m3/d (2.8 MMsft/d or 470 boepd) can be achieved one way or another.
Peter Levine, Chairman, commented
“Onwards and both upwards and downwards as the case may be”.
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 capable of delivering positive cash flows and shareholder returns. With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility.
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