(Alliance News) - Phoenix Global Resources PLC on Tuesday said it has completed the first two horizontal wells at the Mata Mora project in Argentina and production decreased slightly in the first quarter of the year.
Phoenix Global is an oil and gas company with a 90% operated interest in Mata Mora and said both wells were completed in May in a simultaneous operation with 80 frac stages across the two wells.
Flowback of both appraisal wells at Mata Mora will begin in mid-June and results are due in the third quarter of the year.
In the first quarter of 2019, Phoenix Global's daily working interest production from all of its wells was 9,636 barrels of oil equivalent, down 2.5% from 9,885 barrels in the fourth quarter of 2018.
Production was down across all projects - except Tierra del Fuego, where production increased by one barrel of oil equivalent per day to 1,138 - for the three months to March 31 compared to the final quarter of 2018.
During the quarter, Phoenix Global increased its revolving credit facility by USD40.0 million for appraisal and development at Mata Mora and 100% owned Argentinian project, Puesto Rojas. Up to another eight unconventional wells are planned for the Puesto Rojas area in 2019.
Phoenix Global Chief Operating Officer Javier Vallesi said: "The safe completion of our first two horizontal wells at Mata Mora is a significant technical and operational step forward for the company. These wells are important to appraise the potential of the Vaca Muerta formation in this key block."
Vallesi added: "We have also been granted an unconventional concession for the Puesto Rojas block in Mendoza. The concession is the first of its kind to be granted in the province and carries a 35-year term. The award of the unconventional concession paves the way for us to move forward in the continued appraisal of the various unconventional opportunities present in the block and, ultimately, to development and production of unconventional oil and gas in this key concession."
Shares in Phoenix Global were up 1.2% at 12.25 pence on Tuesday afternoon.