TIDMPPC
RNS Number : 3324F
President Energy PLC
16 November 2020
16 November 2020
PRESIDENT ENERGY PLC
("President" or the "Company")
Drilling Update
Testing success at new exploration well EVN-x1
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, provides an update
in relation to the testing of the exploration well EVN-x1 near the
main Estancia Vieja field, Rio Negro Province, Argentina, the
logging of which was referred to in the announcement made on 27
October 2020.
Key points
-- Preliminary testing of the lower of the two identified pay
intervals shown by logs now completed
-- Oil and associated gas successfully and continuously free
flowed to surface without need for swabbing or pumping
-- This represents the first time any hydrocarbons have flowed
from this previously undrilled structure
-- Results in line with P50 success case expectations with
initial production of over 200 bopd expected plus associated
gas
-- Due to the productive success of this interval, the upper gas
prone interval will be tested and then produced at a later time
-- Workover rig now moving to the next location
-- EVN-x1 will be placed into production in the next 14 days
Drilling Programme
As previously announced on 27 October 2020, the logging of the
exploration well EVN-x1 confirmed pay in two clean sand intervals,
the lower being oil, the upper being gas prone.
Completion of the well and preliminary testing of the lower of
these intervals has now been completed. The testing, lasting some
36 hours using the workover rig has been successful with 36 degree
API light oil plus associated gas continuously free flowing to
surface, without the need to swab or pump, through various choke
sizes ranging from a small 2mm up to 8mm. Testing with large size
chokes eg to 16mm was not necessary as the results were both
apparent and obvious. The results demonstrated that there is
currently good energy in the relevant formation with both gas lift
and a deeper water drive.
This is the first time that any hydrocarbons have been produced
from the previously undrilled Estancia Vieja North structure and
marks a successful end to the two well Q4 drilling campaign in Rio
Negro, Argentina, both of which wells have been drilled and
completed on time, on budget and have delivered in line with
pre-drill projections including this current well which, as
flagged, was an exploration well with the concomitant geological
and drilling risks now successfully navigated.
The preliminary testing indicated that initial production levels
can be expected in line with P50 pre-drill success expectations of
over 200 bopd plus associated gas from this lower interval. As a
clean sand with excellent porosity and estimated high vertical
permeability, whilst it is expected that water will be produced as
well as oil, water disposal will not be a problem. The well is near
the main Estancia Vieja pipelines and facilities which will be used
for evacuating both the oil and gas.
The workover rig is now being moved to the next location within
President's fields and it is anticipated that the well will be
placed on production in the next 14 days.
Due to the success in this lower interval, the upper gas-prone
interval in the well will be kept back to be tested and placed into
production at a later date. Initial production projections in
respect of this upper interval remain at 60,000 m(3) /d (353
boepd).
Evaluation of this new structure will now commence and will
continue through the new year as more production and pressure data
becomes available. Accordingly, encouraging as these preliminary
results are, this is a new unproduced structure with no direct
analogues and it is therefore appropriate to take at this stage a
conservative and step by step approach.
Peter Levine, Chairman commented
"Encouraging results and a successful end to our Q4 two well
drilling campaign.
"Whilst work continues in our fields, we are now getting down to
plan for next year with drilling very much on the agenda during
2021. We expect concrete plans to be made available by the end of
January.
"In the meantime, we continue to make progress even in these
challenging times".
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
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 +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
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
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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