TIDMPPC
RNS Number : 1137D
President Energy PLC
26 October 2020
26 October 2020
PRESIDENT ENERGY PLC
("President" or the "Company")
Drilling Update
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, provides an update
in relation to the newly drilled well LB-1001, Las Bases field, Rio
Negro, Argentina.
Key points
-- Net gas pay re-calculated at an increased 70 metres (230 feet) over several intervals
-- Well has been completed by workover rig and tested
-- Testing successful, validating pre-drill estimates of 100,000
m(3) /d (588 boepd) initial gas production
-- Results identified good potential for new workover for the
shut in well, LB-1 now to be performed before year end, and a new
follow on well to be considered for drilling next year
-- Rig now has moved off to next workover and well will be tied
in and placed on production by end November
-- This will also coincide with the bringing into production of
an estimated further 75,000 m3/d (440 boepd) from the workovers of
wells in the Estancia Vieja field
Commentary
After independent expert analysis of the suite of electric logs
run in open hole before the newly drilled LB-1001 well was cased,
it is now estimated that net gas pay of the well spread over
several intervals has increased by 32% to 70 metres (230 feet) from
54 metres (185 feet).
The well has now been completed by the workover rig and testing
has been concluded.
The first interval tested was a thin interval of two metres (6.5
feet) at the bottom of the well. This flowed gas successfully at
ranges between 50,000-100,000 m(3) /d. However as this was only a
thin interval and would deplete in a relatively short time, it was
considered that the next zone above of some 8 metres (26 feet)
offered a better opportunity for longer stable flow. Accordingly
the lowest interval was plugged and testing moved to the next
section up the hole.
This interval has now been likewise successfully tested and
demonstrated that on production it would flow initially at 100,000
m(3) /d (588 boepd) with good pressure. Accordingly the rig has now
moved off site to the next well to be worked over.
LB-1001 will be readied to be placed in production by the end of
November to coincide with the coming on line of some 75,000 m(3) /d
(440 boepd) new gas production from the Estancia Vieja field
recently finished workovers.
The intervals higher up the well will be targeted in the future
as and when this current zone is depleted. However the results of
the log analysis of this well have now identified the potential for
a workover and perforation of intervals in the shut in well LB-1 in
the same field to initiate new, previously untapped gas production.
This workover is now scheduled for before the end of the year.
As well as the workover, the results have opened up the
potential for a further new development well to be drilled at the
Las Bases field. This will be considered for next year.
Thus, by the end of November, from the above wells, President
expects some 175,000 m(3) /d (1,028 boepd) new gas production to be
brought onstream. President's intention is to build into its gas
portfolio the capacity to reduce or increase production flows to
reflect seasonal price variations to optimise profitability and
cash flows whilst maintaining a base load of income. The
deliberately planned increasing of the number of producing wells in
the portfolio to provide flexibility and redundancy as well as good
reservoir management is therefore integral to this strategy.
Glossary:
Boepd means barrels of oil equivalent (oil and gas) per day
LB means the Las Bases Concession, Rio Negro
M(3) /d means cubic metres of production of gas or oil per day
(as the case may be)
Contact:
President Energy PLC
Rob Shepherd, Group FD
Nikita Levine, Investor Relations +44 (0) 207 016 7950
finnCap (Nominated Advisor)
Christopher Raggett, Charlie Beeson +44 (0) 207 220 0500
Shore Capital (Corporate Broker)
Jerry Keen, Antonio Bossi +44 (0) 207 408 4090
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 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 in Argentina
capable of delivering positive cash flows and shareholder returns.
With a strong base of shareholder support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as a Board whose interests are
aligned to those of its shareholders, President Energy gives UK
investors access to the Argentina 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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END
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