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President Energy PLC - Argentina Workover Update

RNS Number : 1835L
President Energy PLC
17 July 2017
 

17 July 2017

PRESIDENT ENERGY PLC

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

 

Argentina, Puesto Guardian Concession Workover Update

Canada Grande field back in production after many years

 

President Energy (AIM: PPC), the upstream oil and gas company, provides an update on its continued work-over programme at its Puesto Guardian Concession, Argentina ("the Concession").

Since the last workover update on 14 June 2017, President has successfully completed work on the new water disposal well at Dos Puntitas 8 and brought the prior successful workovers at Puesto Guardian 21 and Dos Puntitas 15 into production as planned and at expected levels. The Rig then moved to Well CGr-20 at the Canada Grande field in the Concession.

The Concession, by way of reminder, consists of five main fields, four of which (Dos Puntitas, Pozo Escondido, Puesto Guardian and Martinez del Tineo) have currently producing wells.

However, the fifth field, Canada Grande, had not seen any consistent production activity since 2011. The workover at CGr-20, which last produced 32 years ago in 1985, involved perforating a previously ignored and untouched 5-metre section of reservoir which the President team identified as potentially oil bearing, situated above the old production zone in the Cretaceous level which had ceased to flow. 

The well has on a two day test successfully and steadily free flowed good quality light oil, 43 degree API at rates in the range of 50-80 bopd without the need for the previously planned stimulation or downhole pump.

Accordingly, steps are now being taken to hook up this well to the Puesto Guardian field battery as the Canada Grande field is in a remote location having had its infrastructure removed some time ago.

The successful test results and steady oil flow has encouraged President to consider other old wells in the Canada Grande field as well as undrilled prospectivity there.

In the meantime, the Rig is now moving back to the Puesto Guardian field for the next workover at Well PG-19. In parallel, facility upgrades continue to take place with the emphasis on replacing old equipment, maintaining production with the minimum of shut downs and bringing in more powerful surface pumps to more adequately handle the increased gross fluids being produced.

 

Peter Levine, Chairman and Chief Executive, commented:

"In the face of a remote location and varied downhole challenges in a 30 year old well, to bring the fifth field at our Puesto Guardian Concession back into contributing production after many years is a commendable achievement. The fact that we are producing oil from a previously ignored zone in the reservoir gives us an impetus to look at the field with fresh and increasingly educated eyes."

"We now move forward to the next workover at Well PG-19 in the Puesto Guardian Field"

"The success underlines the advantage of President having 34 years of its production licence remaining giving the Company ample opportunity to produce out, at its discretion with regard to timing, its almost 20MMBOE of independently audited 2P Reserves".

 

Glossary

Degree API is a measure of how heavy or light is a petroleum liquid. The higher the figure the lighter it is.

Bopd means barrels of oil per day

MMBOE means million barrels of oil equivalent

2P means proven and probable reserves

This announcement is inside information for the purposes of article 7 of Regulation 596/2014

 

 

 

Contact:

 

President Energy PLC

Peter Levine, Chairman

Miles Biggins, COO

 

 

+44 (0) 207 016 7950

+44 (0) 207 016 7950

 

                        

Peel Hunt LLP (Nominated Advisor & Joint Broker)

Richard Crichton, Ross Allister

 

 

+44 (0) 207 418 8900

BMO Capital Markets (Joint Broker)

Jeremy Low, Neil Haycock and Tom Rider

 

 +44 (0) 207 236 1010

 

Vigo Communications

Chris McMahon

Patrick D'Ancona

+44 (0) 207 830 9700

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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