TIDMPPC
RNS Number : 2022X
President Energy PLC
30 April 2021
30 April 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations update
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
certain activities in the Rio Negro Province, Argentina
Highlights
-- Gas well LB-1002, Las Bases field successfully completed with
initial production levels 30% better than anticipated
-- New gas well EV-1002 spudded
-- New gas well EV-1001 to be completed and projected to be placed on stream within 14 days
LB-1002
Following the drilling of the gas well LB-1002 in the Las Bases
field, the first of the current three well campaign, the well has
now been successfully completed with a total perforated interval of
5 metres (16 feet) in the lower Centenario 5 and 6 intervals
without any form of stimulation. These intervals were not in the
primary target, nor expected to be productive at the time of well
planning and is therefore somewhat of a bonus.
The well was produced on test with an 8mm choke. Production was
stable at some 55,000 m(3) /d of gas (1.94 MMsft/d or circa 323
boepd) versus pre-drill and post-drill estimates of 40,000 m(3) /d,
a 30% increase. Pressure remained robust through the test with no
formation water identified. It is expected that the well will be
producing on stream by the end of next week.
Remaining to be tested is the main target, a known productive
and thicker pay interval higher up the hole, the Centenario 3
section. President will first produce from the current intervals
being the Centenario 5 and 6 sections and use the data for further
consideration of the Las Bases field.
By illustration only, to place the financial benefit of the
current production in context, using the prevailing spot gas price
of US$4 MMBtu, the income net to President per month after relevant
opex on the assumption of the tested production levels continuing
would run at US$200k per month.
New well EV-1002
This well has now spudded. Estimated time to drill, log and case
the well is 15 days from now.
By way of reminder, this well is designed as a twin well of the
formerly producing gas well EV-4 which was drilled in 1989 and
which ceased production in 2019 due to a casing collapse.
Pre-drill estimates of initial production in the success case
are similar to the just drilled well EV-1001 namely 60,000 m(3) /d
(2.1 MMscft/d or 350 boepd).
New well EV-1001
The coiled tubing unit and ancillary test and stimulation
equipment to complete this well and place it on production is now
mobilising to location from the LB-1002 site. It is projected that
subject to successful completion this well, the second in the
current drilling campaign, will be placed on stream within 14
days.
Peter Levine, Chairman, commented
"There is understandably significant investor interest in the
progress of the much discussed exploration farm-out in Paraguay in
respect of which I continue to urge patience reflecting the
multi-stage signing authority process required by a rigidly
structured state energy company.
"However, in that context it is important to keep in mind we are
relative to our size a significant and successful operational
company. Such continued progress in the field once again
demonstrated by this announcement. We do not take each progression
in operations on the ground as some side show to be taken for
granted and ignored. Each step has challenges to navigate.
"Exciting and potentially transformational exploration is great
and of value to have in our portfolio but it is this progress and
the hard work of our people on the ground that will deliver a
substantial improvement in the financial position and prospects of
President, 2021 compared with last year"
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil and gas equivalent
MMBtu means million standard cubic feet 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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