LONDON (Alliance News) - President Energy PLC on Friday said the current level of production at its Puesto Guardian concession is almost double the average level it posted during 2015, as it said planning for its three development well programme was well advanced.
The oil and gas exploration company, which has assets in Argentina and Paraguay, said the current normalised production from the concession is running at a daily rate of 500 barrels of oil per day, with a new workover programme underway on a further two producing wells, which it said would maintain and boost production levels.
As it currently stands, the level of production if almost double the average level of production President Energy saw in 2015, it said.
A development well programme is now projected to commence before the end of July, subject to all appropriate contracts being in place, the company added, and said this programme is currently planned to be completed and the three wells brought on stream in the second half of 2016.
The results will then be analysed with a view to considering a further drilling programme in 2017 on a step-by-step basis. The wells will be side tracks from existing shut-in wells with horizontal producing sections, President Energy said, and will comprise of one well each from the Dos Puntitos, Pozo Escondido and Puesto Guardian fields.
Planning is advanced, and discussions with contractors are ongoing with long lead items in the process of being ordered, President Energy said.
President Energy added that its existing lender IYA Global Ltd, which is part of PLLG Investments Ltd, has indicated its agreement in principle to provide the entire financial support for the programme by way of unsecured senior debt on final terms anticipated to be agreed in "early course".
PLLG Investments is solely owned by President Energy Executive Chairman and Chief Executive Peter Levine.
Shares in President Energy were down 1.7% at 7.25 pence on Friday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
