PPC.L Share News (PPC)

(Sharecast News) - President Energy updated the market on its oil and gas operations on Friday, reporting that the first in the sequence of new oil wells at the Dos Puntitas field of Argentina's Salta province, well DP-2001, had spudded after being delayed due to logistical issues on the 1,950 kilometre journey to the well site.
The AIM-traded firm said drilling was expected to take 30 days at a cost of about $3.5m, with mid-case targeted oil production on success estimated at 40 cubic metres per day.

It said it would update shareholders when the target depth of approximately 3,400 metres is reached, and the well logged.

A programme of workovers of two gas wells in the Rio Negro province, meanwhile, had now commenced.

The company said the first well, ALH-2 in the Angostura concession, was an older gas well which was intended to be perforated, stimulated and placed back on production.

It said the second well, LB-1002, was a well drilled earlier in the year, which to-date had been producing from the deepest section, but had experienced decline.

The workover would address the main target reservoir, which is higher up the well bore.

President said the cost of the workovers would be about $0.5m, and would be completed during November.

In Louisiana, President said the "long-awaited" workover of the Triche well had started, and was projected to continue for three weeks to plug back, perforate and produce from a higher section in the well.

"In the event of success, it is projected that both the Triche and Simmons wells will be back on sustained production at or around the end of this month," the board said in its statement.

The cost of the workover to President was expected to be about $0.5m.

Finally, on the Paraguay farm-out issue, the company said completion of the "long-running matter" was expected at or around the end of November.

"President sees no obstacle in completion," the board said.

"The timing delays solely are process-driven, and the company remains grateful to the authorities in Paraguay for their understanding and assistance.

"The delay is not envisaged to affect the target to drill the first exploration well during the first half of 2022."

At 1148 GMT, shares in President Energy were up 14.53% at 2.15p.