TIDMPPC
RNS Number : 2583D
President Energy PLC
27 October 2020
27 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 drilling of the exploration well EVN-x1 near the
Estancia Vieja field, Rio Negro Province, Argentina.
Key points
-- Well successfully drilled to target depth of 2,000 metres and
cased on time and budget
-- Both full suite electric logs and mud logs show clear
moveable live gas and oil pay with good pressure, porosity and
permeability
-- The results so far support pre-drill P50 projections, subject
to testing in due course
-- Drilling rig is demobilising and the well will be completed
and tested before the end of the year by the workover rig
Drilling Programme
The exploration well EVN-x1 has been successfully drilled to its
target depth of 2,000 metres and cased on time and on budget.
Before casing, a full suite of electric logs were run as well as
pressure testing to supplement the mud logs obtained during the
drilling process.
The electric logs confirmed the evidence shown by mud logs of
net pay of a total of 10 metres (33 feet) of clear live moveable
hydrocarbon pay in two clean sand intervals both with good
pressure, permeability and porosity (latter in excess of 20%). Of
this some 7 metres (23 feet) is considered oil and the balance
gas.
These results provide support for the pre-drill projections of
production of 60,000 m3/d (353 boepd) of gas and 188 bopd which can
only be verified on testing due to the fact that this is a
previously undrilled structure with no direct analogue as to
production performance. Accordingly, until successful testing, it
is too early to come to any conclusions as to actual producibility
and size of the respective reservoirs for gas and oil. Testing will
be made of each individual interval which will not be
co-mingled.
The drilling rig is now beginning to demobilise back to its base
and the workover rig will be brought in to complete and test the
well. This is expected to be before the end of the year as the rig
is committed to work in President's Puesto Flores field to repair
two producing wells and then to go to the Las Bases field to
perform one or two workovers on shut in wells generated by the
success of the Las Bases 1001 well drilled last month.
Peter Levine, Chairman commented
"It is always good to see clear evidence of moveable live gas
and oil in an exploration well being drilled in a new
structure.
"However, it is precisely because of that and the lack of
analogue evidence that one must prudently reserve judgement and be
cautious until the well is tested within the next two months once
the workover rig finishes other pre-planned work in our fields.
"In the meantime, as previously announced, we are looking to
materially increase our gas production around the end November
bringing on line two/three new contributors, also putting back on
line certain oil wells in Rio Negro which have been out of
commission for several months requiring repair".
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
Glossary:
Bopd means barrels of oil per day
Boepd means barrels of oil equivalent (oil and gas) per day
EV means the Estancia Vieja field in the Puesto Flores/Estancia
Vieja Concession, Rio Negro, Argentina
LB means the Las Bases Concession, Rio Negro , Argentina
M(3) /d means cubic metres of production of gas or oil as the
case may be
P50 means internal mid-case estimate
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 institutional base of support, including the IFC,
part of the World Bank Group as well as 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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