Operational Update
25/01/2022 07:00
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RNS Number : 4532Z President Energy PLC 25 January 2022
25 January 2022
PRESIDENT ENERGY PLC
("President" or the "Company")
Operational update
President Energy (AIM: PPC), the international energy company, provides an
update on its operations in Salta and Paraguay.
Operational update
The new well DP-2001 at the Puesto Guardian, Salta, Argentina, has now been
successfully tested with oil to surface from the two expected formation
intervals that are also flowing in other parts of the Dos Puntitas field. The
well will be placed on stream in approximately one week using the same jet
pump as the other wells. Steady state production rates will be advised in due
course.
Further analysis of all the DP-2003 logs now obtained from the second well
drilled in the sequence including latterly obtained through casing, have shown
interesting possibilities including in the deeper interval drilled below the
original target depth. Whilst it serves no purpose to speculate at this stage
as the Company only has electric and mud log analysis with petrophysical
review, the workover rig currently finishing DP-2001 will be mobilised this
coming week to DP-2003 to conduct flow tests. During that time the drilling
rig will be temporarily laid down in an adjacent location in the field.
If those tests suggest a further well at the DP-2003 location is appropriate
then a further well from that well pad will be drilled as DP-2002. The
workover rig will be moved off for this purpose as it is not possible to drill
from the same pad and have the well completed at the same time due to area
constraints. In such case after drilling the well DP-2002, the workover rig
will come back on to site and complete the DP-2003 and test and complete
DP-2002.
After that well, there is a further well to drill at the Puesto Guardian
Concession in the Puesto Guardian field itself, 45 kms away from the Dos
puntitas wells which will in that case be the fourth well in the sequence. The
well will be near the former producing well PG-13 which was originally drilled
by the state company YPF 40 years ago. It produced successfully until it was
suspended 10 years ago due to a difficult fish in the hole (failed packer),
which could not at that stage re retrieved. Whilst there is no question that
the high production levels over the years have depleted the reservoir of oil
and the pressure, there was clearly still oil in the structure and that is the
target as well as newfound production with modern logging and completion
techniques. Target initial production rate is 30 m3/day.
In the event that after consideration of the testing of DP-2003 it is deemed
that there is no benefit from drilling a well from the same pad, i.e. such
that they will be draining the same part of the structure and effectively
"thieving" from each other, then the drilling rig will move off that pad and
workover rig will immediately complete DP-2003. The drilling rig will then
move to drill the new well in the Puesto Guardian field.
The Company is cautiously optimistic that the Puesto Guardian field well will
be the fourth well sequence to this drilling campaign and not the third but in
managing expectations it is appropriate to repeat it is down to the testing.
Patience is therefore required and the facts will out in due course.
Paraguay
President is pleased to announce that its partners in the new exploration well
to be drilled, OPIC Paraguay, the wholly owned subsidiary of the Taiwanese
state owned energy company, CPC, have approved the budget and work programme
for 2022 as laid out by President and accordingly initial cash calls have now
been made to initialise the project. President's Paraguayan subsidiary is the
operator of the venture.
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker) +44 (0) 207 220 0500
Christopher Raggett, Tim Harper
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 Río 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.
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.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for
the release of this announcement on behalf of the Company was Peter Levine,
Chairman.
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