(Sharecast News) - President Energy updated the market on the newly-drilled well 'LB-1001' on Las Bases field in Rio Negro, Argentina on Monday, reporting that net gas pay had been re-calculated at an increased 70 metres over several intervals.
The AIM-traded firm said the well had been completed by a workover rig, and successfully tested, validating the pre-drill estimates of 100,000 cubic metres, or 588 barrels of oil equivalent, of initial daily gas production.
It said the results identified "good potential" for a new workover for the shut in well, LB-1, which would now be performed before the end of the year, as well as a new follow-on well to be considered for drilling next year.
The rig had now moved to the next workover, with the well to be tied-in and placed on production by the end of November.
That would also coincide with the bringing into production of an estimated further 75,000 cubic metres, or 440 barrels of oil equivalent, pre day from the workovers of wells in the Estancia Vieja field.
"As well as the workover, the results have opened up the potential for a further new development well to be drilled at the Las Bases field," the President Energy board said in its statement.
"This will be considered for next year.
"Thus, by the end of November, President expects some 175,000 cubic metres per day of new gas production to be brought on stream."
President said its intention was to build into its gas portfolio the capacity to reduce or increase production flows to reflect seasonal price variations, to optimise profitability and cash flows while maintaining a base load of income.
"The deliberately-planned increasing of the number of producing wells in the portfolio to provide flexibility and redundancy as well as good reservoir management is therefore integral to this strategy."
At 1339 GMT, shares in President Energy were down 0.51% at 1.47p.
IN BRIEF: President Energy Hails Testing Success At Rio Negro