15 Aug 2019 07:00
15 August 2019
Phoenix Global Resources plc
("Phoenix" or the "Company")
Initial crude oil production from Mata Mora concession
Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company offering its investors direct exposure to Argentina's Vaca Muerta shale formation and other unconventional resources, is pleased to announce the initial crude oil production from its first horizontal muti-fractured wells at the Mata Mora concession in the Neuquén province.
During the month of July 2019, a total of 34,273 barrels of Mata Mora light crude with API gravity of 36 degrees representing the initial test volumes was produced from the two Mata Mora lateral wells. Both Mata Mora wells were drilled earlier in the year and were unconventionally completed in the La Cocina horizon of the Vaca Muerta formation in June 2019.
The wells were drilled from a single pad at a spacing of approximately 250 metres, with each well having a lateral section of more than 2,000 metres. The wells were successfully geo-steered with more than 90% of each lateral maintained within a seven metre window in the Vaca Muerta formation. The wells were simultaneously completed using the latest high-intensity zipper-fracturing design that was specifically selected based on learnings from Vaca Muerta lateral wells drilled by other operators in nearby offset locations.
In testing to date, each Mata Mora well has seen production rates of approximately 1,000 boepd with reservoir pressure in excess of 9,900 psi. Crude production from both wells continues to ramp up as oil displaces water during the ongoing flowback process.
These two wells satisfy the Company's initial licence commitment for the concession. The Company is in the process of evaluating the results of the wells as flowback continues as part of an extended well test and expects to be able to announce the results in Q4 2019.
At the conclusion of testing, the Company will apply to Neuquén province for an unconventional exploitation licence in respect of the Mata Mora block. That application will include a commitment for a pilot development programme for Mata Mora.
Mata Mora is a concession area covering 55,000 acres located in the South Neuquina Basin in Argentina. The Company holds a 90% operated working interest in the concession with the remaining 10% held by Gas y Petróleo del Neuquén, the Neuquén province-owned oil and gas company.
Javier Vallesi, Chief Operating Officer, commented:
"The results of our first two long lateral wells completed in the Mata Mora are encouraging in terms of the development potential of the block. The wells remain in an early stage of the flowback process with circa 8% of the frac water recovered to date. The flowback phase has been extended to obtain additional well performance data and to allow further optimisation of the wells. We expect to be able to update the market in relation to the calculated initial production rates and performance against planned type curves during Q4"
For further information, please contact:
Phoenix Global Resources plc | Kevin Dennehy, CFO
| T: +54 11 5258 7500 |
Shore Capital (Nominated Adviser and Joint Broker)
| Antonio Bossi David Coaten
| T: +44 20 7408 4050 |
Panmure Gordon (Joint Broker)
| Charles Lesser
| T: +44 20 7886 2500 |
Camarco | Billy Clegg Owen Roberts James Crothers | T: +44 20 3757 4980 |
Qualified Person Review
In accordance with AIM guidance for mining, oil and gas companies, Mr. Javier Vallesi and Mr. Greg Easley have reviewed the information contained in this announcement. Mr. Vallesi, Chief Operating Officer for the group, is a petroleum engineer with over 22 years of experience in the oil and gas industry and is a member of the Argentinian Institute of Oil and Gas. Mr. Easley, Senior Manager-Reservoir and Engineering, is a petroleum engineer with over 10 years of experience in the oil and gas industry, is a licenced Professional Engineer in the State of Texas and is a member of the Society of Petroleum Engineers.
About Phoenix
Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on the London Stock Exchange (AIM: PGR) and Buenos Aires Stock Exchange (BCBA: PGR). The Company has over 1.8 million licenced working interest acres in Argentina (of which over 0.7 million are operated), 57.1 million boe of working interest 2P reserves and average working interest production of approximately 10,249 boepd in 2018. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 700,000 working interest acres with Vaca Muerta and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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