TIDMPPC
RNS Number : 7669W
President Energy PLC
28 April 2021
28 April 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations update
Drilling success at EV-1001
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 the
newly drilled well EV-1001 at the Estancia Vieja field, Rio Negro
Province, Argentina
Highlights
-- New well EV-1001 drilled, logged and cased on time and budget
-- Electric and mud logs together with petrophysical review
identify net gas pay as expected and support pre-drill projection
of an initial production of 60,000 m(3) /d
-- The rig is now moving off location to the next well, EV-1002,
also at the Estancia Vieja field, which move will take up to 4 days
with spudding currently projected within approximately 7 days
-- The new well EV-1001 will now be completed with a coiled
tubing unit and production is slated to commence in the first half
of May taking advantage of higher gas prices
-- Completion of the new well LB-1002 currently in progress,
with further news anticipated at the start of May
-- Plans continue for significant investment in Salta Province,
Argentina in H2 2021 focused on delivering material new oil
production by the year end to benefit from more stabilised oil
prices
Drilling programme Rio Negro Province, Argentina
The new well EV-1001 at the Estancia Vieja field, Rio Negro,
Argentina has now been successfully and safely drilled to the
target depth of 1,850 metres, logged and cased on time and budget.
This well was designed as a twin to the formerly producing gas well
EV-x1 which suffered a casing collapse rendering it
irreparable.
The electric and mud logs together with petrophysical review are
all in accordance with pre-drill expectations and are aligned with
those from its twin well EV-x1 which was drilled in 1988. A total
net gas pay of 11 metres has been identified with good average
porosity of 27%.
Such results support President's pre-drill projection of an
initial production of some 60,000 m(3) /d (2.1MMsft/d or circa 350
boepd). The well will be completed using the same coiled tubing
unit currently working on completing the earlier drilled well
LB-1002. It is therefore projected that this well EV-1001 will be
tested and then placed on production during the first half of
May.
In the meantime, the rig is being moved to the next location to
drill the well EV-1002 also at the Estancia Vieja field, Rio Negro
Province. This will take up to 4 days with spudding of this well
expected to take place within the next 7 days.
Puesto Guardian Concession, Salta Province, Argentina
Plans for the extensive work programme in Salta continue to
progress. Advanced negotiations are taking place with regard to the
acquisition of some 100km(2) of 3D seismic as well as preparations
for three new oil production wells at the Dos Puntitas field within
the Concession.
It is anticipated that the seismic work will be awarded before
the end of June with work to start during Q3 2021. Discussions are
taking place with rig contractors. It is currently anticipated that
drilling of the three wells will commence at or around end Q3 2021
subject to all appropriate permissions being in place.
Peter Levine, Chairman, commented
"Whilst this was a twin well, nothing can 100% be taken for
granted downhole. The result of EV-1001 is pleasing in that it is
as anticipated and reflects the continued professionalism shown by
all our operating divisions in Argentina at a continued difficult
and disruptive time for the country.
"With spot gas prices in our region currently increased to some
US$4 MMBtu, every piece of incremental gas production delivered
direct to the market through our owned and operated gas pipeline is
beneficial to our bottom line.
"That is why the H1 2021 story for us is gas with one more firm
well in Rio Negro to drill and further work in Las Bases still
under review.
"However, in H2 for President it's all about oil. We will return
to Salta Province in that period with some serious investment.
President has an extensive work programme of new 3D seismic
acquisition and a three well programme aimed at both identifying
new well locations in previously prolific structures and
importantly by the end of the year materially increasing oil
production in the Province to take the benefit of higher oil
prices.
"Our busy year therefore continues with many work streams
conducted in parallel. We will keep the market regularly
updated".
Glossary
Boepd means barrels of oil and gas equivalent
MMbtu means Million fo British standard thermal units of gas
Mmsft/d means Million standard cubic feet of gas per day
M(3) /d means million of cubic metres of gas per day
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
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.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
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