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15 Dec 2017 07:00
15 December 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Significant workover success at Puesto Flores Field from first two wells, ahead of expectations
Field production 1,500 bopd with oil sales prices increasing
Highlights:
Two workovers successfully completed ahead of time and under budget on wells PFO-50 and PFO-9New untested intervals totalling 11 metres net perforated in PFO-50 - results ahead of expectations - on production still stabilising at c. 400 bopd - 100% increase from the pre shut-in outputPFO-50 formerly producing interval repaired and successfully tested, regaining pre shut-in levels of production on test. Section isolated to be kept in reserve for future production due to success of new perforated sectionWell PFO-9 formerly producing interval back on stream; production still stabilising at 100 bopdTotal current gross field production increased to approximately 1,500 bopd with expected further increases from the remaining two workover wellsRig at next well location and work has commenced - next two wells have previously untested virgin potentially oil producing intervals perforated as per PFO-50Company expects to receive US$60.80 per barrel for its December oil from Puesto Flores Concession
President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina is pleased to announce successful results from its first two workover programme wells at the Puesto Flores Field, Rio Negro Province, Argentina. Wells PFO-50 and PFO-9 were worked-over ahead of time and under budget at a total cost of US$920k versus a budget of US$1.122 million.
The first phase of the workover on well PFO-50 successfully repaired the well which was put out of action in October 2017 due to a lightning strike in an electrical storm. The originally producing interval was successfully tested, regaining pre shut-in levels of production.
In accordance with the work plan, prior to placing PFO-50 on stream, the untested up-hole intervals totalling 11 metres net were perforated. The results were beyond expectations, so much so that the original producing section downhole has not been comingled and accordingly has been isolated to be kept in reserve for future production. The well is now on-stream solely from the new intervals and, with the aid of an electric submersible pump, production is still stabilising at approximately 400 bopd representing an increase of over 100% from the previous pre shut-in production output.
The successful production of oil from these previously untested intervals in PFO-50 has a positive beneficial read across for future production and prospectivity in the field, the extent of which is currently being studied by President's technical team.
Well PFO-9 has been successfully worked-over to repair a hole in the tubing and is now back on production. Production is still stabilising and the well is currently contributing some 100 bopd.
The rig is now at the next well location and work has commenced. These final two wells of the four well work programme, each with reported holes in tubing, will, in addition to being repaired, have previously untested virgin potentially oil producing intervals perforated.
Total current gross field production concomitantly increased to approximately 1,500 bopd with expected further increases from the remaining two programme wells.
In relation to oil prices, President expects to receive US$60.80 per barrel for its December oil from Puesto Flores Concession.
Peter Levine, Chairman and CEO, commented
"It is very encouraging to start our workover programme at Puesto Flores with a significant production contribution from previously untested oil intervals, substantially ahead of what we had expected. The increased production, together with the current increased level of realisable oil prices gives a further boost to our current positive cash flow."
Contact:
President Energy PLC Peter Levine, Chairman, Chief Executive Bruce Martin, Chief Financial Officer |
+44 (0) 207 016 7950
|
finnCap (Nominated Advisor & Joint Broker) Christopher Raggett, Scott Mathieson, Emily Morris
|
+44 (0) 207 220 0573 |
BMO Capital Markets (Joint Broker) Jeremy Low, Neil Haycock, Tom Rider
|
+44 (0) 207 236 1010
|
Camarco Financial PR Billy Clegg, Georgia Edmonds, Mercedes Valenzuela-Goldman |
+44 (0) 203 757 4980 |
Notes to Editors
President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets. The Company currently has independently assessed 1P reserves in excess of 16 MMboe and 2P reserves of more than 25 MMboe.
The Company has operated interests in the Puesto Flores and Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company is focused on growing production in the near term in Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.
President Energy's second largest shareholder is the IFC, part of the World Bank Group and is actively pursuing value accretive acquisitions of high quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support and an in-country management team, President Energy gives UK investors rare access to the Argentinian growth story combined with world class standards of corporate governance, environmental and social responsibility.
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014
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