6 Mar 2013 07:00
6 March, 2013
PRESIDENT ENERGY PLC
("President Energy" or "the Company")
Argentina Update
President Energy (AIM: PPC) today provides an update on its operations in Argentina.
Highlights
·; Seismic reprocessing and interpretation completed
·; Significant undrilled highs identified in proven field areas
·; STOIIP up by 215% in the Pozo Escondido Field from 20MMB to 63 MMB
·; Validates management views of the material upside for oil recovery
·; Field operations for fracs due to commence shortly
Argentina
3D reprocessing
As previously announced, a comprehensive independent reprocessing and remapping exercise was undertaken on the 2006 3D data on two of the five fields within the Puesto Guardian Concession. The reprocessing and interpretation of the data on the Pozo Escondido and Dos Puntitas fields has now been completed, showing significant undrilled highs within the proven field areas.
At Pozo Escondido, management estimate an increase in stock tank oil initially in place ("STOIIP") of 215% from 20 MMB to 63 MMB. At the Dos Puntitas field, the reprocessing has validated the existing STOIIP of 15 MMB and six undrilled highs have been identified.
These results, when combined with the low oil recovery to date, 1% and 11% for Pozo Escondido and Dos Puntitas, respectively, confirm management's view of further development potential in these fields through fracs, sidetracks and further drilling.
A short technical presentation on the 3D reprocessing result is available on President Energy's website.
Operations
The operator of the work-over rig is performing essential maintenance at its Salta base, and has been delayed due to seasonally late and heavy rain in the area. The rig will mobilised shortly to the field to prepare three wells for the initial fraccing campaign, two in Pozo Escondido and one in Dos Puntitas. Preparation of the well sites is completed. Halliburton International has been engaged to perform the fracs, which will commence immediately following completion of the work-overs, expected in April. Each frac should take approximately 1 week, and a further announcement will be made following the completion of the three fracs.
An updated CPR and further development plan is expected to be completed in July 2013.
Peter Levine, Chairman, said:
"We are very encouraged with results of the reprocessing and interpretation of the 3D data on two of our fields in the Puesto Guardian Concession. Once we have the results from the fracs, we can incorporate this critical data to determine the next steps at Puesto Guardian and a longer term field development plan."
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.
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