5 Nov 2021 07:00
5 November 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
OPERATIONAL UPDATE
President Energy (AIM: PPC), the energy company announces an update on its oil and gas operations.
Highlights
· Spud of first new oil well in Puesto Guardian, Salta, Argentina
· Two new workovers of gas wells commenced in Rio Negro, Argentina
· Workover of the Triche well now in progress in Louisiana
· Completion of Paraguay farm-out expected this month
Salta Province, Argentina
The first in the sequence of new oil wells at the Dos Puntitas field, Salta Province, Argentina, being well DP-2001, has spudded after having been delayed due to logistical issues on the 1,950 km journey to the well site.
Drilling is expected to take 30 days at a cost of approximately US$3.5 million and mid-case targeted oil production on success is estimated at 40m3/d.
A further announcement will be made upon the target depth of approximately 3,400 metres having been reached and the well logged.
New workovers of gas wells
A programme of workovers of two gas wells in Rio Negro Province, Argentina has commenced.
The first well, ALH-2 in the Angostura Concession, is an older gas well which is intended to be perforated, stimulated and placed back on production. The second well, LB-1002, is a well drilled earlier this year which has to date been producing from the deepest section but has experienced decline. The workover will address the main target reservoir which is higher up the well bore.
The cost of the workovers is approximately US$500k in aggregate and will be completed during this month.
Louisiana workover of Triche well in progress
The long-awaited workover of the Triche well has commenced and is projected to continue for three weeks to plug back, perforate and produce from a higher section in the well.
In the event of success, it is projected that both the Triche and Simmons wells will be back on sustained production at or around the end of this month.
The cost of the workover to President is expected to be approximately US$500k.
Paraguay farm-out
Completion of this long-running matter is finally expected at or around the end of this month.
President sees no obstacle in completion. The timing delays solely are process driven and the Company remains grateful to the authorities in Paraguay for their understanding and assistance.
The delay is not envisaged to affect the target to drill the first exploration well during H1 2022.
Contact:
President Energy PLC Nikita Levine, Investor Relations
| +44 (0) 207 016 7950 info@presidentpc.com |
finnCap (Nominated Advisor and broker) Christopher Raggett, Tim Harper
| +44 (0) 207 220 0500
|
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 has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions, and Angostura exploration contract, all of which are situated in the Rio Negro Province in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW 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.
Atome Energy is the green hydrogen and ammonia subsidiary of President Energy PLC with intended operations in the Americas and Europe and a targeted separate listing on the London Stock Exchange market later in 2021.
The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets capable of delivering positive cash flows and shareholder returns. With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy 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