President Energy PLC Argentina Workover Update (1835L)
July 17 2017 - 1:00AM
UK Regulatory
TIDMPPC
RNS Number : 1835L
President Energy PLC
17 July 2017
17 July 2017
PRESIDENT ENERGY PLC
("President", "the Company" or "President Energy")
Argentina, Puesto Guardian Concession Workover Update
Canada Grande field back in production after many years
President Energy (AIM: PPC), the upstream oil and gas company,
provides an update on its continued work-over programme at its
Puesto Guardian Concession, Argentina ("the Concession").
Since the last workover update on 14 June 2017, President has
successfully completed work on the new water disposal well at Dos
Puntitas 8 and brought the prior successful workovers at Puesto
Guardian 21 and Dos Puntitas 15 into production as planned and at
expected levels. The Rig then moved to Well CGr-20 at the Canada
Grande field in the Concession.
The Concession, by way of reminder, consists of five main
fields, four of which (Dos Puntitas, Pozo Escondido, Puesto
Guardian and Martinez del Tineo) have currently producing
wells.
However, the fifth field, Canada Grande, had not seen any
consistent production activity since 2011. The workover at CGr-20,
which last produced 32 years ago in 1985, involved perforating a
previously ignored and untouched 5-metre section of reservoir which
the President team identified as potentially oil bearing, situated
above the old production zone in the Cretaceous level which had
ceased to flow.
The well has on a two day test successfully and steadily free
flowed good quality light oil, 43 degree API at rates in the range
of 50-80 bopd without the need for the previously planned
stimulation or downhole pump.
Accordingly, steps are now being taken to hook up this well to
the Puesto Guardian field battery as the Canada Grande field is in
a remote location having had its infrastructure removed some time
ago.
The successful test results and steady oil flow has encouraged
President to consider other old wells in the Canada Grande field as
well as undrilled prospectivity there.
In the meantime, the Rig is now moving back to the Puesto
Guardian field for the next workover at Well PG-19. In parallel,
facility upgrades continue to take place with the emphasis on
replacing old equipment, maintaining production with the minimum of
shut downs and bringing in more powerful surface pumps to more
adequately handle the increased gross fluids being produced.
Peter Levine, Chairman and Chief Executive, commented:
"In the face of a remote location and varied downhole challenges
in a 30 year old well, to bring the fifth field at our Puesto
Guardian Concession back into contributing production after many
years is a commendable achievement. The fact that we are producing
oil from a previously ignored zone in the reservoir gives us an
impetus to look at the field with fresh and increasingly educated
eyes."
"We now move forward to the next workover at Well PG-19 in the
Puesto Guardian Field"
"The success underlines the advantage of President having 34
years of its production licence remaining giving the Company ample
opportunity to produce out, at its discretion with regard to
timing, its almost 20MMBOE of independently audited 2P
Reserves".
Glossary
Degree API is a measure of how heavy or light is a petroleum
liquid. The higher the figure the lighter it is.
Bopd means barrels of oil per day
MMBOE means million barrels of oil equivalent
2P means proven and probable reserves
This announcement is inside information for the purposes of
article 7 of Regulation 596/2014
Contact:
President Energy PLC
Peter Levine, Chairman +44 (0) 207 016 7950
Miles Biggins, COO +44 (0) 207 016 7950
Peel Hunt LLP (Nominated
Advisor & Joint Broker)
Richard Crichton, Ross Allister +44 (0) 207 418 8900
BMO Capital Markets (Joint
Broker)
Jeremy Low, Neil Haycock +44 (0) 207 236
and Tom Rider 1010
Vigo Communications
Chris McMahon
Patrick D'Ancona +44 (0) 207 830 9700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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