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President Energy PLC - ARGENTINA UPDATE

RNS Number : 6368R
President Energy PLC
18 June 2018
 

18 June 2018

 

PRESIDENT ENERGY PLC

("President", "the Company" or "President Energy")

 

ARGENTINA UPDATE

Puesto Flores oil field production surpasses 2,000bopd

 

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update in relation to its workover programme at the Puesto Flores field in Rio Negro Province, Argentina.

 

Key points

 

·     Three previously producing wells at the Puesto Flores field (President 90% - Ediphsa 10%) have now been  successfully worked-over, repaired and put back in production

·    Current Puesto Flores field production 2,100 bopd (June average to date over 1,800 bopd as wells come  back on stream) with pressures stable

·      This level of production represents an over 50% increase in the nine months since acquisition 

·      Work completed to date below budget

·      Workover programme extended from seven to eight wells with two of the eight wells to be worked over in the Estancia Vieja Field

 

Work on the first three wells of the current workover campaign has been completed under budget. Work is continuing on the next well in the series and, in light of the success achieved, the programme has been enlarged by the addition of a further well.

 

The results of the workover programme to date have been positive. Puesto Flores oil field production is presently running at approximately 2,100 bopd, with the average for June so far being over 1,800 bopd (as wells come back on stream), with pressures on the three worked over wells relatively stable.

 

This level represents an increase of over 50% in the nine months since the acquisition of the Concession.  The success achieved so far is demonstrated by the fact that one of the wells has seen production increases which will achieve payback on the investment in under 30 days, significantly ahead of expectations. In addition, the efficient management of operations should permit the completion of an additional eighth well, taking the program to seven production well workovers and one water injection conversion, at the same budget as originally planned for seven wells.

 

Of the four producers remaining to be worked on after the current injector well is completed, two are now planned as oil well workovers at the Estancia Vieja field.

 

In the meantime, preparatory work is continuing for start of the extended gas well tests at the Estancia Vieja field now scheduled to commence before the end of June.

 

Peter Levine, Chairman of President, commented:

 

"We are greatly encouraged by the results so far and to exceed the 2,000 bopd at this stage is creditable. From only the first three wells, President is already surpassing our pre-commencement target for initial production from the entire workover programme.

 

"We have still a lot of work to do and whilst it would be wrong to hang out the flags just yet, the progress to date is commendable. It also underlines the significant potential yet to be realised in this concession which we are pleased to operate and have as our 10% partner, Ediphsa, the Rio Negro Province's energy company."

 

Glossary

Bopd-barrels of oil per day

 

Victor Linari, Master in Geology and Geophysics and Member of Society of Exploration Geophysicists, who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

 

 

Contact:

 

President Energy PLC

Peter Levine, Chairman, Chief Executive

Rob Shepherd, Group FD

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor & Joint Broker)

Christopher Raggett, Scott Mathieson, Andrew Burdis

 

 

+44 (0) 207 220 0573

BMO Capital Markets (Joint Broker)

Jeremy Low, Neil Haycock, Tom Rider

 

 

 +44 (0) 207 236 1010

 

Camarco Financial PR

Billy Clegg, Owen Roberts, Violet Wilson

 

+44 (0) 203 757 4980

 

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 and Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company is focused on growing production in the near term in 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.

 

President Energy's third largest shareholder is the IFC, part of the World Bank Group and is 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 and an in-country management team, 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 Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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