29 Jul 2013 07:00
29 July 2013
PRESIDENT ENERGY PLC
("President Energy" or "the Company")
ARGENTINA OPERATIONAL UPDATE
Good flow rate potential from stimulation of old wells, with clean up work continuing
President Energy (AIM: PPC), today provides an update on the hydraulic stimulation programme on old shut in wells PE-7 and PE-8 at the Pozo Escondido field in the Puesto Guardian Concession (President 50% interest).
PE-7 Well
The PE-7 well is in the process of being cleaned up. The well which has been shut in for 27 years is currently demonstrating good flow rate potential in line with our expectations, and is swabbing at gross flow rate of liquids (oil and injection water) of 230bopd. The oil cut is presently 30-40% per cent and continues, as expected, to increase steadily as the injection water continues to be cleaned up. This production is only from the carbonate zone where no reserves are presently booked.
After completing the clean-up, the forward plan is a re-perforation of the deeper A6 sands with the well to be produced from both sections. Earlier well surveys have demonstrated that reservoir pressure is near original.
PE-8 Well
Initial indications for this well, which has just started to clean up, are also demonstrating the potential for commercial rates. The well is awaiting the work over rig currently on PE-7 to complete the clean-up operation.
The preliminary performance of the two Pozo Escondido stimulations is providing strong encouragement for the potential for reserves in the carbonate reservoir, and for considering further stimulation across the large portfolio of old wells in the Concession. In addition, DP 1001 is now producing 85% oil following its stimulation. The program is within the original budget. We will gather further performance data of these wells and provide an update on the conclusions in due course.
Miles Biggins, Bsc Joint Honours University College London, with 22 years of experience in the oil and gas sector, is a Petroleum Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
For further information contact:
President Energy PLC
John Hamilton, CEO +44 (0) 207 016 7950
Ben Wilkinson, Finance Director +44 (0) 207 016 7950
RBC Capital Markets
Jeremy Low, Matthew Coakes, Daniel Conti +44 (0) 207 653 4000
Jefferies Hoare Govett
Simon Hardy, Max Jones +44 (0) 207 029 8316
Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme, Henry Lerwill