2 Dec 2021 07:00
2 December 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Operations update
Drilling success in Salta, Argentina
President Energy (AIM: PPC), the energy company with a diverse portfolio of energy assets provides an update on its oil and gas operations in Argentina and Louisiana
Highlights
· Drilling of well DP-2001 reached the target depth safely with electric logging concluded
· The logs show the well is virtually analogous to the well DP-1001 which was drilled in 2010 in the same field which had an initial production rate of 40m3/d and is still in continuous production
· Following the encouraging results casing running is taking place and the new well will be tested in January
· Workover of Triche well in Louisiana progressing with promising progress
Salta drilling
Drilling of the DP-2001 well at the Dos Puntitas field, Puesto Guardian Concession (President 100%) safely and successfully reached the planned target depth of 3,225 metres, on time and budget with encouraging results.
A full suite of electric logs, including pressure testing, has been acquired over three separate runs which, on a preliminary basis, indicate that this new oil well DP-2001 is virtually analogous to the well DP-1001 drilled at the same field in 2010.
The electric logs on DP2001 show a total net oil pay of some 10 metres over two intervals. Pressure tests show an average depletion of 10% from original pressure with good mobility shown in each of the spot tests which are all positive signs taking into account Dos Puntitas is a producing field.
It is encouraging that the older well DP-1001, drilled at the time by the then operator Puesto Guardian at a cost of approximately US$6 million is still in continuous production and had an initial production level of 40m3/d of oil. After 11 years the well is still producing 9m3/d.
The new well DP-2001 which has been drilled by President faster and at nearly half the cost, is now being cased and thereafter cemented prior to completion and testing with a workover rig. This rig will be mobilised to start work in the field in January so that, all being well, it can complete and test both this well and the next well in the sequence, DP-2003. It is testing that will provide the acid test as to produceability of any well.
After casing of the present well, the rig will move to the location for that second well DP-2003 where spudding is estimated to take place in about 10 days time.
Louisiana
The workover of the Triche well is ongoing, the well has been cleaned up and the lower open perforations, considered to be generating a higher water cut, have been successfully cemented.
The top of the previously perforated interval has now been re-perforated with a previously un-addressed interval higher up the hole saved for later as there is good pressure seen from the perforations already made. The higher interval has been made ready to be completed rigless at a later date.
Promising progress has been made to date and whilst running a day or two behind schedule, the well should be back on production within the first half of December.
Glossary
M3/d means cubic metres of oil per day
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 |
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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.
President has in its portfolio Atome Energy PLC, its hydrogen and ammonia production company, soon to be spun out and floated on AIM.
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.
Further details on President and Atome can be found on their respective web sites and twitter accounts.
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014