President Energy PLC Operational Update (1722L)
September 29 2016 - 1:01AM
UK Regulatory
TIDMPPC
RNS Number : 1722L
President Energy PLC
29 September 2016
29 September 2016
PRESIDENT ENERGY PLC
("President Energy" or "the Company")
Operational Update
President Energy (AIM: PPC), the oil and gas exploration company
provides the following update on its Argentine and Louisiana
operations.
Well DP 1002 S/T, Dos Puntitas Field, Puesto Guardian
Concession, Salta, Argentina.
The well remains on target to reach full production around the
end of the first half of October, subject, as stated in the
previous RNS of 2 September 2016, to successful operational
execution.
Whilst, further to that announcement, certain cementing issues
were encountered causing further delay, subsequent drilling has
proceeded satisfactorily. President Energy has now successfully
intercepted the target Yacoraite producing formation at a measured
depth of 3740m and an inclination of 84deg, at which point,
notwithstanding the heavy oil based drilling mud being used of 11
lbm/gal*, the expected increase in C1-C5** hydrocarbon gas readings
were seen through the mud logs. The well was then drilled down to
the casing point of 3756m measured depth with the continued
presence of these elevated hydrocarbon gases. The hole is now being
prepared for running casing down to the Yacoraite whereupon the
production horizontal leg will be drilled at or around horizontal
and, subject to all being in accordance to plan, the well
completed.
Production in Puesto Guardian Concession, Argentina
Daily production for the first 25 days of September is averaging
approximately 500 bopd.
Further to the Company's previous RNS on 2 September 2016, a
Halliburton Coiled Tubing Unit ("CTU") has been contracted and is
ready to be mobilised to the Puesto Guardian fields awaiting a
final regulatory permission for road transport, anticipated to be
obtained this week. The CTU is due to start work shortly and will
be combined with a stimulation programme on four non-producing
wells. Management estimates that the CTU work on those wells will
yield an increase in total field production in the region of
20%.
Production from Louisiana assets
The A55 well, one of the two wells referred to in the Company's
previous RNS, has now come on stream. The Company is waiting for
the non-operated Triche well, previously producing 60-70 boepd net
to President Energy, to come back on stream, after being out of
effective working commission for approximately six months due to
pipeline issues.
The Company expects the Triche well to come back on-stream in
about 14 days, at which point, the Company should see its share of
total net production in Louisiana increase to the 200-250 boepd
levels projected in the previous RNS.
Peter Levine, Chairman, Commented
"In the face of unforeseen issues we are nevertheless pleased
with the achievement so far in the well DP 1002 S/T. We are on
trajectory and have intercepted the target Yacoraite producing
formation on or about geological prognosis with the expected
increase in hydrocarbon gases."
"The mission is now to case the well to the producing formation,
then drill the horizontal leg and complete successfully.
"Elsewhere, we continue to target incremental gains on
production where they can be cost effectively achieved."
*pounds weight per gallon
**C1-C5 hydrocarbon gases are respectively methane, ethane,
propane, butane and pentane
This announcement is inside information for the porpoises of
article 7 of Regulation 596/2014
Miles Biggins, Bsc Joint Honours University College London, with
25 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:
+44 (0) 207
President Energy PLC 016 7950
Peter Levine, Chairman +44 (0) 207
Miles Biggins, COO 016 7950
Peel Hunt LLP (Nominated Advisor
& Joint Broker) +44 (0) 207
Richard Crichton, Ross Allister 418 8900
BMO Capital Markets
Neil Haycock, Tom Rider +44 (0) 207
and Jeremy Low 236 1010
Vigo Communications
Chris McMahon +44 (0)20 7830
Patrick d'Ancona 9700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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