LONDON (Alliance News) - President Energy PLC has beaten its year-end production target, the firm said Wednesday, while it has also achieved another successful well test.
President's 2018-end production rate in Argentina was 3,300 barrels of oil equivalent per day, compared to a target of 3,000boepd. The figure up by more than 50% year-on-year.
The production figure, President added, does not include any contribution from the Las Bases concession and only a limited amount from Puesto Prado and Estancia Vieja, all of which are in Rio Negro province.
President hopes to start commercial gas sales from Las Bases and Estancia Vieja by the end of the first quarter of 2019.
The company has also, it announced, successfully tested well PF0 1005 on Estancia Vieja and Puesto Flores, and it is flowing initially at 250 barrels of oil a day, ahead of expectations.
This was the third well of three to be tested, and all three have met with success. In March, it plans to release a new reserves audit, and President expects proven reserves at Rio Negro to increase "significantly" due to the successful work.
The plan in 2019 will be to plan a new drilling campaign in Argentina, start a new workover campaign, and begin gas production at Las Bases and Estancia Vieja.
Elsewhere, President also wants to start drilling at Jefferson Island in Louisiana.
Chairman & Chief Executive Peter Levine said: "Our objectives for 2018 were successfully delivered, and are history now."
"The strategy for 2019 is to take everything we achieved and build on it to deliver another year of dynamic growth and profitability both organically and by acquisition," Levine continued.
"The expected significant increase in proven reserves from our Rio Negro assets underlines the material improvement in shareholder value achieved last year.
"Whilst President's 2P proven and probable reserves and extensive resources are important to demonstrate future potential, the essential core value of our business is reflected by proven hydrocarbon reserves particularly with greater emphasis from the higher value added Rio Negro fields."
Shares were up 6.5% on Wednesday morning at 9.80 pence each.
