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30 Aug 2011 07:00
30 August 2011
PRESIDENT PETROLEUM COMPANY PLC
("President" or "the Company")
Operations Update
New Drilling Success at East White Lake, Louisiana ("EWL") and additional wells to be drilled in Louisiana and Argentina targeting significant increase in production
·; New well LA Furs A- 23 proves very good net pay
·; Well to be brought on stream within coming days
·; Excellent net backs expected
·; Seven additional new oil production wells to be drilled by President over coming months
·; Expected significant increases in production and strong cash generation
Well LA-Furs A-23
Following on from the recent run of three successful re-completions in Louisiana, President has now successfully drilled a new well targeting proven undeveloped reserves ("PUD") at East White Lake. The LA Furs A-23 well was drilled to 6950 feet and was drilled and completed in under two weeks. Good quality oil pay, with additional gas reserves, has been identified in three different sands extending to some 32ft.
Initial production from the deepest and thinnest sand is projected to be between 50 and 75 bopd gross (President net interest 21.875%). However, production rates are anticipated to increase to 100 bopd gross when production moves to the higher sands where gas is also likely to contribute. Net backs to President will be in line with those achieved from President's recent re-completion successes (in excess of $70 for oil, net of tax and operating expense).
Seven new production wells to be drilled
At EWL in Louisiana the rig will now move on to the next new well targeting PUD reserves VPSB A 49. In East Lake Verret, preparations are underway for the McKerrall 1 side track targeting PUD reserves, with a projected spud date in September.
These two new wells will be complemented by a series of five new production wells to be drilled by President in Argentina, expected to be commencing within the next six weeks. The seven wells, at least six of which are targeting identified PUD reserves, are expected to significantly increase President's oil production. All rigs are already contracted.
Peter Levine, Chairman of President Petroleum (USA) Inc commented:-
"This latest success is most pleasing. It demonstrates the continued conversion of undeveloped reserves into entirely new production.
"We have a very busy drilling programme with seven new oil production wells to be drilled within the coming months in Louisiana and at our Argentina interests.
"President's position remains strong and we look forward to the resulting material increase in President's overall production with the concomitant significant beneficial increase in President's cash flow."
For further information contact:
President Petroleum Company
John Hamilton, Interim Chairman +44 (0) 207 811 0140
Ben Wilkinson, Finance Director +44 (0) 207 811 0140
Evolution Securities +44 (0) 207 071 4300
Tim Redfern, Neil Elliot, Adam James
RBS Hoare Govett +44 (0) 207 678 8000
Stephen Bowler, John MacGowan, Max Jones
Pelham Bell Pottinger +44 (0) 207 861 3232
James Henderson, Mark Antelme, Jenny Renton
Dr Jonathan M Cohen, FGS, C Geol, Executive Vice President Exploration, 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.
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