Malcy3 Aug 2017 08:58
President Energy
A general update from PPC today including the news from PG-19 which has been doing a workover on a well that had been shut-in for 19 years having already produced 450/- barrels of oil. After cleaning, perforating and doing an acid stimulation liquids flowed and the oil cut appears to be about 10% having been only 25% way back in the past. PPC should therefore get 50-75 b/d once a downhole pump is installed and it will be connected to the Puesto Guardian battery. After that the rig will move to PG-20 onto a well that has been shut-in for 15 years and produced 650/- barrels so far. Whilst this is occurring there are ‘significant’ ongoing infrastructure works at PG, including installing five new surface pumps, lifting and cleaning of existing downhole pumps and laying of production lines for new producing wells and commissioning new water disposal wells. Finally in Louisiana, having had a shut down due to heavy rains production is back and the newly acquired Triche well is performing in-line with expectations.
As a result of all this production is currently constrained to 600 b/d but during September PPC will bring on an additional four producing wells, three more will be added that are being raised from sub-optimal to full volume and in addition a three well stimulation campaign will start. Clearly there is much going on in Argentina and Peter Levine makes the point that much is being learned in country which will enable the it, along with its contractors to “move on to actively consider acquisitions of producing assets in the core heartlands of hydrocarbon production in Argentina”. It is clear that with this solid base being provided by successful workover activity PL is now seriously considering the next stage of development for the company, already well undervalued the market will soon I suspect also come to realise it as PPC moves forward.
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