LONDON (Alliance News) - President Energy PLC on Thursday said two well workovers at its Argentinian projects were completed in December, with further work planned for this month, and said it views the devaluation of the Argentine peso and other legislative changes in the country positively.
President said the two workovers conducted on the Don Punititos field in Argentina were completed on budget, with the results exceeding management expectations. The two wells are now producing around 120 barrels of oil per day, ahead of the pre-workover prediction of 88 barrels a day.
As a result of this, President said it is planning workovers on a further five wells at the project, with work to start as soon as the first quarter of 2016. It said it may drill new wells thereafter.
President also noted the election of a new government in Argentina during December and the subsequent energy policy that has been tabled, as well as the devaluation of the peso in late December due to the country removing restrictions on the currency.
President said the new energy policy in Argentina should have a positive impact on its plans to increase oil production, cut costs, and progress talks on its gas projects in the country.
"The objective now in Argentina is to build on the platform of increased production to make further advances in 2016, first by expanding the programme of workovers and then, circumstances permitting, with the drilling of new wells," said Peter Levine, President's chairman.
Shares in the company were down 7.2% to 5.91 pence on Thursday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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