President Energy PLC Drilling and Workover Update (3493M)
September 22 2021 - 1:59AM
UK Regulatory
TIDMPPC
RNS Number : 3493M
President Energy PLC
22 September 2021
22 September 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Drilling and Workover Update
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, announces a
drilling and workover update on various of its assets.
Puesto Guardian Concession, Salta Province, Argentina
The Company has signed a drilling services contract for three
firm wells to be drilled at the Puesto Guardian Concession before
the end of this year. The contract also includes an option to
retain the rig into the New Year for a further two wells after
drilling of the third firm well.
This will enable continued drilling in the Concession, should
the results from the ongoing seismic reprocessing confirm two
additional prospects that have been previously identified.
The first three wells will be drilled in the Dos Puntitas field
and the two contingent wells for 2022 in the Pozo Escondido
field.
Each well is estimated to cost US$3.5 million and have a
drilling time of 45 days with a mean success case initial projected
oil production of 40 m(3) /d (250 bopd).
Site clearance for the first well has begun with the rig due to
be mobilised during the first days of October. Drilling of the
first well is now expected to commence by the end of the third week
in October with drilling of all three wells expected to be
completed by the end of the year with the final well in that
sequence expected to be on stream in the first part of January
2022.
Triche and Simmons 2 wells, Louisiana
Both these wells remain offline as they have for the last three
months awaiting workover of the Triche well to reinstate
production. The operation of the Triche well is required for the
Simmons 2 well to operate, as the Simmons 2 well used the gas
produced from the Triche for gas lift.
The Triche well has not performed optimally all year due to the
progressive breakdown of the downhole gravel pack in the well used
to constrain sand production. The frustrating delay in fixing the
problem has been materially exacerbated by the effects of Hurricane
Ida which devastated the locality.
A rig is now available, but the Company is awaiting barge
availability. It is hoped that the workover will be completed by
the end of October and the wells will work at the levels enjoyed
last year namely at 300 boepd net to President half being oil.
Realisation prices are robust with oil currently at approximately
$70 per barrel. Reserves levels are unaffected with lower than
expected depletion due to the constrained production.
Peter Levine, Chairman, commented
"We look forward to the drilling campaign in Salta. With current
prices there comparable to Rio Negro and fixed opex already covered
by existing production, the incremental production will make a good
contribution to Group.
"Louisiana, for various reasons out of our control, has been
frustrating for much of this year. However we are close to being
back on track. Nevertheless, the events have given management cause
to assess the future of our Louisana assets within the Group and we
will do so at or around the end of the year once the wells are back
online and have been producing for a period".
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil equivalent 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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