TIDMPPC
RNS Number : 6368R
President Energy PLC
18 June 2018
18 June 2018
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
ARGENTINA UPDATE
Puesto Flores oil field production surpasses 2,000bopd
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, provides an update in relation to
its workover programme at the Puesto Flores field in Rio Negro
Province, Argentina.
Key points
-- Three previously producing wells at the Puesto Flores field
(President 90% - Ediphsa 10%) have now been successfully
worked-over, repaired and put back in production
-- Current Puesto Flores field production 2,100 bopd (June
average to date over 1,800 bopd as wells come back on stream) with
pressures stable
-- This level of production represents an over 50% increase in
the nine months since acquisition
-- Work completed to date below budget
-- Workover programme extended from seven to eight wells with
two of the eight wells to be worked over in the Estancia Vieja
Field
Work on the first three wells of the current workover campaign
has been completed under budget. Work is continuing on the next
well in the series and, in light of the success achieved, the
programme has been enlarged by the addition of a further well.
The results of the workover programme to date have been
positive. Puesto Flores oil field production is presently running
at approximately 2,100 bopd, with the average for June so far being
over 1,800 bopd (as wells come back on stream), with pressures on
the three worked over wells relatively stable.
This level represents an increase of over 50% in the nine months
since the acquisition of the Concession. The success achieved so
far is demonstrated by the fact that one of the wells has seen
production increases which will achieve payback on the investment
in under 30 days, significantly ahead of expectations. In addition,
the efficient management of operations should permit the completion
of an additional eighth well, taking the program to seven
production well workovers and one water injection conversion, at
the same budget as originally planned for seven wells.
Of the four producers remaining to be worked on after the
current injector well is completed, two are now planned as oil well
workovers at the Estancia Vieja field.
In the meantime, preparatory work is continuing for start of the
extended gas well tests at the Estancia Vieja field now scheduled
to commence before the end of June.
Peter Levine, Chairman of President, commented:
"We are greatly encouraged by the results so far and to exceed
the 2,000 bopd at this stage is creditable. From only the first
three wells, President is already surpassing our pre-commencement
target for initial production from the entire workover
programme.
"We have still a lot of work to do and whilst it would be wrong
to hang out the flags just yet, the progress to date is
commendable. It also underlines the significant potential yet to be
realised in this concession which we are pleased to operate and
have as our 10% partner, Ediphsa, the Rio Negro Province's energy
company."
Glossary
Bopd-barrels of oil per day
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
Rob Shepherd, Group FD +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, Tom Rider +44 (0) 207 236 1010
Camarco Financial PR
Billy Clegg, Owen Roberts, Violet
Wilson +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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCBCGDLGGBBGIR
(END) Dow Jones Newswires
June 18, 2018 02:00 ET (06:00 GMT)
Molecular Energies (LSE:MEN)
Historical Stock Chart
From Apr 2024 to May 2024
Molecular Energies (LSE:MEN)
Historical Stock Chart
From May 2023 to May 2024