27 Jun 2013 07:00
27 June 2013
PRESIDENT ENERGY PLC
("President Energy" or "the Company")
ARGENTINA OPERATIONAL UPDATE
President Energy announces that the preliminary results from the first of the three hydraulically stimulated wells at the Puesto Guardian concession (President Energy 50% working interest) are performing ahead of expectation.
Well DP1001 at the Dos Puntitas Field is currently free flowing (without pump) into the facility at a gross flow rate of liquids (oil and injection water) of 490bpd. The oil cut is presently 70 per cent and continues, as expected, to increase steadily as the injection water continues to be cleaned up. This gross flow rate represents a five-fold increase in production pre-stimulation, with oil coming from both the carbonates and A6 sand sections. The reservoir pressure is estimated at 4130 psi which is within 10% of the original field pressure recorded in 1983.
Whilst it would be premature to draw too many conclusions at this stage of the clean-up and initial production of these three wells, the magnitude of flow-rate increase on this first single stage oil well stimulation is an extremely encouraging response.
The work-over rig is now moving to well PE-8 at the Pozo Escondido Field to commence the clean-up operation on the second stimulated well, whereafter it will move to PE-7.
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