President Energy PLC - New Rio Negro pipeline update
("President" or the "Company")
New Rio Negro pipeline and infrastructure now commissioned and in operation
Gas sales from Estancia Vieja field a record high
The work now commissioned
President is pleased to announce that it has commissioned the previously announced new 16km section of gas pipeline section between its Puesto Prado and Las Bases facilities in Rio Negro province, together with the associated infrastructure which have been placed into operation thereby enabling a significantly greater volume of gas to flow through the entire length of the Company's 70km pipeline to market.
The work, completed without any incident on budget and on time, and all managed by President's own procurement, engineering, operations and regulatory teams, included the following:
• engineering, design, permitting and procurement for all work;
• proactively working with all landowners and interested stakeholders including all necessary transportation concessions;
• civil works, installing compressors and dehydration units in both Angostura and Las Bases;
• significant reconstruction work in Angostora, Las Bases and Estancia Vieja fields to meet international industry standards;
• project management and supervision of all construction phases including excavation and installation of the 16km pipeline, with the number of workers on site peaking at over 100;
• extensive testing of new and existing pipelines and facilities and
• commissioning and bringing shut in wells on line.
The aggregate cost of all the work was approximately
Current net gas production is now being ramped with gas flowing successfully to market from Estancia Vieja field at significantly greater volumes than at any time in the history of the field now the new pipeline is in operation.
Once the ramp up has progressed to an appropriate level, expected within the next few days, a further announcement will be made in relation to aggregate volumes of gas production. President is pleased to report that current projections of the increasing gas production are in line with previously announced expectations being approximately 1,200 boepd.
As a result of the installation of a larger scale compressor, and the opening up of more shut-in wells in Estancia Vieja due in Q2 2020, it is projected that from
Gas prices in
"The story of the first half of 2020 is all about gas. The necessary base infrastructure in Rio Negro is now in place and it is a tribute to, and reflective of, the depth of management and employees of our
"President is now a much more balanced energy company from a year ago as we continue our strategy of growth both organically and by way of appropriate value enhancing acquisitions.
"We move on to planning our 2020 drilling campaign and will provide further information on this in due course."
Boepd barrels of oil equivalent (oil and gas) per day
MMscft/d million standard cubic feet of gas per day
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Notes to Editors
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
The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets in
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
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