TIDMPPC
RNS Number : 5975F
President Energy PLC
16 July 2019
16 July 2019
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Argentina update
President Energy (AIM: PPC), the upstream oil and gas company
with a diverse portfolio of production and exploration assets
focused primarily in Argentina, is pleased to provide an update on
its frac operations at the Puesto Flores field, Rio Negro Province,
Argentina.
Frac operation at well PFO-16 , Puesto Flores
As previously announced, President has recently conducted a
trial hydraulic fracturing of well PFO-16 in the Puesto Flores
field. The interval selected for fraccing was the Precuyo formation
being tighter than the Punta Rosada in Puesto Flores, although the
former is also present and producing whether on its own or
co-mingled in four wells in Puesto Flores. As far as President is
aware, this is the first time that any frac operation has taken
place in the Puesto Flores field addressing the Precuyo
formation.
Drilled in March 2012, PFO-16 is one of wells in the field
producing solely from the Precuyo and, immediately prior to the
frac, was producing at a modest rate of 8m(3) net oil per day (ca.
50 barrels per day). It was chosen as the trial frac candidate due
to the low production rate and perceived lack of proximity to
substantial water bearing zones.
The frac operation was completed successfully with over
100,000lbs (45 tonnes) of proppant going into the formation.
Flowback and testing operations are currently ongoing to clean out
the well.
President is pleased to report that so far the frac has proved
to be at the high end of initial expectations. In the production
testing that is taking place, the oil cut (ie net oil to total
volume of liquids recovered) is a very good 95% and whilst clearly
this is a depleted reservoir, the daily test rate of oil production
28m(3) (c. 175 bpd) is 3x greater than the afor-mentioned pre-frac
level.
The well, still not fully cleaned up after the frac, will be
monitored for a month as a more prolonged period of time is needed
to develop a more precise forward looking view as to the likely
post frac behaviour of the formation operation and decline rates.
It is nevertheless a most positive outcome so far for President's
first frac with potentially a materially positive read across to
other similar wells drilled and to be drilled.
With these preliminary results, President has now commenced
planning for other frac candidates in existing wells across the
Company's Rio Negro assets where the Precuyo is either at virgin or
at a less depleted pressure than was encountered in PFO-16. In such
instances, all other things being equal, the production rates post
frac of such candidates would reasonably be expected to be
significantly higher than in a depleted reservoir such as at
PFO-16.
In the event that such a frac programme is implemented, it is
anticipated it will take place, subject to equipment availability,
during this year. The potential for enhancing production by
fraccing will also be taken into account as appropriate in the
forthcoming programme of new wells in Rio Negro.
A further announcement in relation to progress in the frac
operations is expected to be made in about a month. In the meantime
the current workover programme continues.
Peter Levine M.A (Oxon) , Chairman commented:
"The frac results to date are very good.
"This is all part of a lot of our work in H1, namely developing
a greater understanding of our Rio Negro reservoirs with the
objective of finding ways to optimise production, mitigate decline
rates and prolong economic field life.
"Whilst it is still a matter of step by step, we are most
encouraged by what we are seeing so far from this trial frac, which
has the potential to open a new front in extracting greater value
from our fields."
Glossary
M(3) is a cubic metre of oil with each one cubic metre
equivalent to approximately 6.3 barrels of oil
Dr Martin Gee, PhD in Geophysics (Oxon), BSc (First Class hons)
in Earth Sciences (Cardiff) who meets the criteria for qualified
persons under the AIM guidance note for mining and gas companies,
has reviewed and approved the technical information contained in
this announcement
Contact:
President Energy PLC
Peter Levine, Chairman
Rob Shepherd, Group FD +44 (0) 207 016 7950
finnCap (Nominated Advisor)
Christopher Raggett, Scott Mathieson +44 (0) 207 220 0500
Panmure Gordon (Joint Broker)
Charles Lesser, Dominic Morley +44 (0) 207 886 2500
Whitman Howard (Joint Broker)
Hugh Rich, Grant Baker +44 (0) 207 659 1234
Tavistock (Financial PR)
Nick Elwes, Simon Hudson +44 (0) 207 920 3150
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,
Estancia Vieja, Puesto Prado and Las Bases Concessions, Rio Negro
Province as well as 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 in Argentina
capable of delivering positive cash flows and shareholder returns.
With a strong institutional base of support, including the IFC,
part of the World Bank Group, an in-country management team as well
as a Board whose interests are aligned to those of its
shareholders, 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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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