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RNS Number : 4532Z

President Energy PLC

25 January 2022

25 January 2022

PRESIDENT ENERGY PLC

("President" or the "Company")

Operational update

President Energy (AIM: PPC), the international energy company, provides an update on its operations in Salta and Paraguay.

Operational update

The new well DP-2001 at the Puesto Guardian, Salta, Argentina, has now been successfully tested with oil to surface from the two expected formation intervals that are also flowing in other parts of the Dos Puntitas field. The well will be placed on stream in approximately one week using the same jet pump as the other wells. Steady state production rates will be advised in due course.

Further analysis of all the DP-2003 logs now obtained from the second well drilled in the sequence including latterly obtained through casing, have shown interesting possibilities including in the deeper interval drilled below the original target depth. Whilst it serves no purpose to speculate at this stage as the Company only has electric and mud log analysis with petrophysical review, the workover rig currently finishing DP-2001 will be mobilised this coming week to DP-2003 to conduct flow tests. During that time the drilling rig will be temporarily laid down in an adjacent location in the field.

If those tests suggest a further well at the DP-2003 location is appropriate then a further well from that well pad will be drilled as DP-2002. The workover rig will be moved off for this purpose as it is not possible to drill from the same pad and have the well completed at the same time due to area constraints. In such case after drilling the well DP-2002, the workover rig will come back on to site and complete the DP-2003 and test and complete DP-2002.

After that well, there is a further well to drill at the Puesto Guardian Concession in the Puesto Guardian field itself, 45 kms away from the Dos puntitas wells which will in that case be the fourth well in the sequence. The well will be near the former producing well PG-13 which was originally drilled by the state company YPF 40 years ago. It produced successfully until it was suspended 10 years ago due to a difficult fish in the hole (failed packer), which could not at that stage re retrieved. Whilst there is no question that the high production levels over the years have depleted the reservoir of oil and the pressure, there was clearly still oil in the structure and that is the target as well as newfound production with modern logging and completion techniques. Target initial production rate is 30 m3/day.

In the event that after consideration of the testing of DP-2003 it is deemed that there is no benefit from drilling a well from the same pad, i.e. such that they will be draining the same part of the structure and effectively "thieving" from each other, then the drilling rig will move off that pad and workover rig will immediately complete DP-2003. The drilling rig will then move to drill the new well in the Puesto Guardian field.

The Company is cautiously optimistic that the Puesto Guardian field well will be the fourth well sequence to this drilling campaign and not the third but in managing expectations it is appropriate to repeat it is down to the testing. Patience is therefore required and the facts will out in due course.

Paraguay

President is pleased to announce that its partners in the new exploration well to be drilled, OPIC Paraguay, the wholly owned subsidiary of the Taiwanese state owned energy company, CPC, have approved the budget and work programme for 2022 as laid out by President and accordingly initial cash calls have now been made to initialise the project. President's Paraguayan subsidiary is the operator of the venture.

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 Río 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.

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.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.

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January 25, 2022 02:00 ET (07:00 GMT)

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