PGR.L Share News (PGR)

(Sharecast News) - Phoenix Global Resources updated the market on its third quarter operations on Monday, reporting that extended well testing had continued at Mata Mora, with the installation of the artificial lift planned for MMx-1001 in early 2020.
The AIM-traded firm said five wells had been completed in the Folded Agrio formation at Puesto Rojas, with all wells currently on flowback.

It said the 2019 drilling campaign was completed during the period, with the drilling of two wells at La Paloma, satisfying the licence commitments for the block.

Waterflood optimisation was ongoing at Chachahuen Sur as part of the firm's secondary recovery operations to manage the production decline, with the board reporting that its average daily working interest production had increased to 10,830 barrels of oil equivalent, from 9,640 barrels in the second quarter.

Looking at its finances, Phoenix Global said its amended convertible revolving credit facility had been extended by $10m to fund its exploration and development activity through to the year-end.

Its third quarter revenue was $34.1m, down from $36.5m in the second quarter, while its average realised prices slid to $38.9 per barrel of oil equivalent, from $45.1 per barrel in the quarter prior.

The sale of the company's non-core, partner-operated conventional Santa Cruz Sur assets was completed on 12 November, the board noted.

Looking ahead, Phoenix Global said planning was underway for the company's initial long-lateral unconventional well to be drilled at Corralera in the first half of 2020.

It said work was continuing on the application for an unconventional development concession at Mata Mora in 2020 as well.

"We are pleased with the ongoing progress made during the quarter where the paced development of our significant unconventional development portfolio continues to show promising results and to provide valuable information related to the subsurface," said chief operating officer Javier Vallesi.

"Testing continues at Mata Mora, the results of which will be used to help define the future drilling and the overall development plan for the block.

"At Puesto Rojas, the vertical Agrio unconventional wells were drilled and completed under budget and are now on flowback."

Vallesi said that, consistent with the firm's operational objectives, it was continuing to build its organisational and execution capability as it began the appraisal and development of its unconventional concessions.

"The sale of our Santa Cruz assets in November further focuses our resources on the company's significant unconventional acreage consistent with our stated objective to become a leading, Argentina-focused, unconventional development and production company.

"The board continues to monitor the transitional arrangements following the October presidential election and believes that the oil and gas industry will remain an important part of the economy contributing to the future of Argentina."

At 0802 GMT, shares in Phoenix Global Resources were up 11.04% at 19.52p.