15 Apr 2013 07:00
15 April 2013
PRESIDENT ENERGY PLC
ARGENTINA UPDATE
Fraccing Operations Commence
President Energy PLC today announces that fraccing operations have commenced at its Puesto Guardian concession in Argentina.
The work-over rig is now in location having previously been delayed due to bad weather and upgrading. Work-over operations have started on a first phase three well programme as a necessary prelude to fraccing equipment arriving on site. Work-over and fraccing will operate in tandem with the first results now expected in early June.
The three wells subject to the first phase are in order of operation: Wells PE7 and PE8 at the Pozo Escondido Field and Well DP1001 at the Dos Puntitas Field.
Wells PE7 and PE8 have both been shut in for some 20 years and previously successfully produced from the A6 sands whilst showing unrecovered oil from the Carbonates above. Both show original pressure and are not near water. Whilst the forthcoming fraccing operations will be centred on the unproduced oil in the Carbonates it can also be expected to propagate into the previous prolific A6 sands.
DP1001 is a relatively new well producing circa 80bopd free flow from both the A6 sands and the higher Carbonate interval. The frac will target primarily this Carbonate interval of some 25 metres.
The commencement of the fraccing campaign follows the previously announced results from the 3D seismic survey recently carried out. Following this survey management estimated that at Pozo Escondido, 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.
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