leadf
logo-loader
RNS
viewPresident Energy PLC

President Energy PLC - Drilling Update

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 m3/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

M3/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

Nikita Levine, Investor Relations

 

 

 

+44 (0) 207 016 7950

 [email protected]

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

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UPDQXLFFBFLXFBD

Quick facts: President Energy PLC

Price: -

Market: AIM
Market Cap: -
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

7 min read