RE: Blue finish6 Jul 2021 12:45
Just a recap with a couple of amendments.........
1. OIL....Puesto Guardian Concession, Salta Province, Argentina.It is anticipated that the seismic work will be awarded before the end of June with work to start during Q3 2021. Discussions are taking place with rig contractors. It is currently anticipated that drilling of the three wells will commence at or around end Q3 2021 subject to all appropriate permissions being in place.
2. ATOM......First real news re: co-operation agreement with the innovation arm ("Techco") of a government-owned green electricity generator . It is expected that a further announcement's will follow shortly.
3. Treatment Plant. New treatment plant and infrastructure set to start first phase operations in Rio Negro by end June bringing immediate cost savings whth an estimated $4/boe reduction in operating costs.
5. More Gas Well's..... Possibility of new wells in the same originally pressured fault block as EV-1002 now being considered for later this year.
6. Waterflooding. Positive results from the secondary recovery pilot project in the main Puesto Flores field .Waterflooding if successful, enables greater levels of oil in mature fields to be produced which otherwise would be left in the ground. By so doing not only does it produce more of the 2P (proven and probable) oil reserves but mitigates the inevitable effect of natural decline in production from existing wells by softening the decline curve.
7. Later in H2, there is a planned 3D seismic data acquisition programme over a formerly prolific Canada Grande field within the Puesto Guardian Concession, Salta Province to find new well locations to target and drill the productive A6 sand there. An initial land survey by potential contractors is currently underway. The best wells in Canada Grande produced initially as much as 1,000 boepd from the clean A6 sands. If the data indicates commercially viable well locations, then it would be President's objective to drill in Canada Grande following on from the H2 drilling in Salta.
7. Paraguay farm-out signed....it is currently projected that drilling will commence in Delray during H1 2022. Further details on timing will be announced as and when it is available.
8. WTI at $76+ is at 5 year highs.The average oil prices realised by President for the first five month of 2021 are running 35% higher than average for the full year 2020 ( updated May 2021 when the price was $62). The average gas prices realised by President for the first five months of 2021 are running 40% higher than for the same period in 2020. Spot gas as at today of US$5 per MMBtu is 100% higher than at the same time last year.
9. Our share price three years ago was 8p+ with half the shares but more debt , our production is double that of 2018.