TIDMPPC
RNS Number : 3376H
President Energy PLC
12 March 2018
12 March 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
ESTANCIA VIEJA SUCCESSFUL TEST RESULTS
Estancia Vieja field to be reactivated
Produceable and viable gas field confirmed
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, announces the results from its
recent reactivation testing of gas wells at the Estancia Vieja
field at the Puesto Flores/Estancia Vieja Concession in Rio Negro
Province, Argentina.
Highlights
-- Live gas field identified with potentially commercial gas flows achieved
-- As a result of tests Estancia Vieja field to be reactivated
-- Three wells tested at Estancia Vieja field; two of the wells
produced median rates of approximately 200 and 250 boepd each at a
6mm choke plus associated condensate with the top rates achieved at
larger choke sizes of 300 and 520 boepd respectively
-- Pressure recovery tests were performed successfully
indicating potential for good production
-- Three further gas wells potentially available for testing later this year
-- First gas production targeted for late H2 2018
-- President booked minimal 2P gas reserves at Estancia Vieja
which may be expected to increase at y/e 2018 as the field
develops
President has now completed the testing of three previously
drilled gas wells at Estancia Vieja field. These wells are EV 7, 13
and 19 each drilled over 10 years ago and shut in from or before
2011. Each well is some one to two kilometres away from the other
in different areas of the field. The gas prices at the time of shut
in were less than US$2 per MMBtu, whereas the gas price now is in
excess of US$4 per MMBtu in the summer and over US$5 per MMBtu in
the winter (each MMBtu is 0.9756 Mmscf). The gas from these wells
was never commercially sold by the previous operator and was used
for power generation.
Each well was tested between 24-48 hours at choke sizes varying
between 4mm and 12mm. Pressure recovery tests performed on each
well showed good results.
EV 7, initially produced -on a 24-hour test- gas condensate of
50 bopd with a small amount of gas. A liquid column was identified
in the tubing which negated the flow of gas and which will require
evacuation in due course. Even the limited results on this well
demonstrated it can be a successful gas and condensate well.
EV 13 results were very good with a 48-hour test. The well
produced gas with equivalent daily rates from 1.1mmscf/d (200
boepd) at 4mm choke size to 1.6mmscf/d (280 boepd) at 10mm with
stable pressure at each stage. The optimum production choke size of
6mm tested at 1.35mmscf/d (220 boedp). This well in addition
produced modest condensate and pressure recovery was quick.
EV19 results were excellent and beyond expectations producing at
daily rates equivalent to between 1,3mmscf/d (210boepd) at 4mm
choke to over 3.2mmscf/d (530 boepd) at 12mm choke with the optimum
initial 6mm choke at equivalent of 1.85mmbtu (300boepd). This well
also produced modest condensate. Pressure recovery was likewise
within hours.
Taking into account the positive test results there are now
potentially 3 further gas wells available for testing. Eatancia
Vieja field is targeted to be reactivated in late 2018 with work
ongoing to determine the volume of the produceable accumulation. As
at y/e 2017 the certified reserves at Estancia Vieja were not
material and these may be expected to increase in the future. Once
evaluation has taken place President will determine the optimum
production methods for the gas with first gas production targeted
to commence in late H2 2018.
Peter Levine, Chairman and CEO, commented:
"The encouraging results of these tests demonstrate a
produceable and viable gas field at Estancia Vieja to complement
our successful oil business at the adjacent Puesto Flores
field.
We are currently considering the optimum way to develop the
field potential with the target of generating first gas production
in the latter part of this year. We are excited by this additional
opportunity that will further diversify the Company's portfolio of
cash generative production assets"
Glossary
2P proven and probable oil reserves
mmscf/d million cubic feet of gas per day
Boepd barrel of oil equivalent per day
Bopd barrel of oil per day
Bcf billion cubic feet of gas
MMBtu million British thermal units
Victor Linari, Master in Geology and Geophysics and Member of
Society of Exploration Geophysicists, who meets the criteria of
qualified persons under the AIM guidance note for mining and oil
and gas companies, has reviewed and approved the technical
information contained in this announcement.
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, Andrew Burdis +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, Owen Roberts,
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 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.
President Energy's third 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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