4 Apr 2017 07:00
4 April 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
PUESTO GUARDIAN CONCESSION, SALTA PROVINCE, ARGENTINA
OPERATIONS UPDATE
President Energy (AIM: PPC), the upstream oil and gas company provides the following update on its Argentine operations.
Highlights
· Current production from the Puesto Guardian Concession now running at a steady rate in excess of 800 bopd
· DP1001 initial production ahead of original expectations, free flowing without pump
· Continued adverse weather means workover rig now expected to start the shut-in well frac campaign next week
Further to the Company's announcement on 29 March 2017, DP1001, the well previously worked over, has performed stronger than expected currently, steadily free flowing without pump on continued testing at rates in excess of 350 bopd, contributing to Concession production in excess of 800 bopd.
As stated in the last announcement, whilst natural decline from these initial rates should be reasonably expected, the current flow rates from this previously producing well are greater than our pre-workover expectations and those anticipated at the time of the previous announcement.
Continued heavy rain has prevented the rig moving to the next location, being the first in the series of workovers of old shut-in wells. It is projected that the rig will be at the next location during next week to commence the frac programme of old shut in wells.
Peter Levine, Chairman, commented:
"The latest production data, particularly from DP1001, is encouraging with regard to Concession potential and the shareholder value of our newly increased hydrocarbon reserves at the Puesto Guardian Concession.
Even before we commence our frac programme on shut-in wells the rate of 800 bopd currently being achieved is a substantial step towards our target of 1,200 bopd by end September 2017."
Glossary
bopd - barrels of oil per day
This announcement is inside information for the purposes of article 7 of Regulation 596/2014
Contact:
President Energy PLC Peter Levine, Chairman Miles Biggins, COO
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+44 (0) 207 016 7950 +44 (0) 207 016 7950
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Peel Hunt LLP (Nominated Advisor & Joint Broker) Richard Crichton, Ross Allister
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+44 (0) 207 418 8900 |
BMO Capital Markets (Joint Broker) Jeremy Low, Neil Haycock and Tom Rider
| +44 (0) 207 236 1010
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Vigo Communications Chris McMahon Patrick D'Ancona | +44 (0) 207 830 9700 |