President Energy PLC Operational Update (4316Z)
December 15 2017 - 2:00AM
UK Regulatory
TIDMPPC
RNS Number : 4316Z
President Energy PLC
15 December 2017
15 December 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Significant workover success at Puesto Flores Field from first
two wells, ahead of expectations
Field production 1,500 bopd with oil sales prices increasing
Highlights:
-- Two workovers successfully completed ahead of time and under budget on wells PFO-50 and PFO-9
-- New untested intervals totalling 11 metres net perforated in PFO-50 - results ahead of expectations - on
production still stabilising at c. 400 bopd - 100% increase from the pre shut-in output
-- PFO-50 formerly producing interval repaired and successfully tested, regaining pre shut-in levels of production
on test. Section isolated to be kept in reserve for future production due to success of new perforated section
-- Well PFO-9 formerly producing interval back on stream; production still stabilising at 100 bopd
-- Total current gross field production increased to approximately 1,500 bopd with expected further increases from
the remaining two workover wells
-- Rig at next well location and work has commenced - next two wells have previously untested virgin potentially oil
producing intervals perforated as per PFO-50
-- Company expects to receive US$60.80 per barrel for its December oil from Puesto Flores Concession
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina is pleased to announce successful
results from its first two workover programme wells at the Puesto
Flores Field, Rio Negro Province, Argentina. Wells PFO-50 and PFO-9
were worked-over ahead of time and under budget at a total cost of
US$920k versus a budget of US$1.122 million.
The first phase of the workover on well PFO-50 successfully
repaired the well which was put out of action in October 2017 due
to a lightning strike in an electrical storm. The originally
producing interval was successfully tested, regaining pre shut-in
levels of production.
In accordance with the work plan, prior to placing PFO-50 on
stream, the untested up-hole intervals totalling 11 metres net were
perforated. The results were beyond expectations, so much so that
the original producing section downhole has not been comingled and
accordingly has been isolated to be kept in reserve for future
production. The well is now on-stream solely from the new intervals
and, with the aid of an electric submersible pump, production is
still stabilising at approximately 400 bopd representing an
increase of over 100% from the previous pre shut-in production
output.
The successful production of oil from these previously untested
intervals in PFO-50 has a positive beneficial read across for
future production and prospectivity in the field, the extent of
which is currently being studied by President's technical team.
Well PFO-9 has been successfully worked-over to repair a hole in
the tubing and is now back on production. Production is still
stabilising and the well is currently contributing some 100
bopd.
The rig is now at the next well location and work has commenced.
These final two wells of the four well work programme, each with
reported holes in tubing, will, in addition to being repaired, have
previously untested virgin potentially oil producing intervals
perforated.
Total current gross field production concomitantly increased to
approximately 1,500 bopd with expected further increases from the
remaining two programme wells.
In relation to oil prices, President expects to receive US$60.80
per barrel for its December oil from Puesto Flores Concession.
Peter Levine, Chairman and CEO, commented
"It is very encouraging to start our workover programme at
Puesto Flores with a significant production contribution from
previously untested oil intervals, substantially ahead of what we
had expected. The increased production, together with the current
increased level of realisable oil prices gives a further boost to
our current positive cash flow."
Contact:
President Energy PLC
Peter Levine, Chairman, Chief
Executive
Bruce Martin, Chief Financial
Officer +44 (0) 207 016 7950
finnCap (Nominated Advisor
& Joint Broker)
Christopher Raggett, Scott
Mathieson, Emily Morris +44 (0) 207 220 0573
BMO Capital Markets (Joint
Broker)
Jeremy Low, Neil Haycock, +44 (0) 207 236
Tom Rider 1010
Camarco Financial PR
Billy Clegg, Georgia Edmonds,
Mercedes Valenzuela-Goldman +44 (0) 203 757 4980
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 currently has independently
assessed 1P reserves in excess of 16 MMboe and 2P reserves of more
than 25 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.
President Energy's second largest shareholder 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.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
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