TIDMPPC
RNS Number : 5563R
President Energy PLC
09 March 2021
9 March 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Rio Negro 2021 drilling update
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets focused primarily in
South America, provides an update on its drilling programme in Rio
Negro Province, Argentina
Highlights
-- Drilling rig contracted with site preparations in progress
-- On schedule to commence first well by end of March
-- Re-alignment of drilling order to maximise production and decision making efficacy
-- First well to be drilled will be LB-1002 in the Las Bases Concession, Rio Negro
President announces that it has the drilling rig under contract
with Quintana Well Pro for its new wells to be drilled in Rio Negro
province. Well site preparations have commenced and the Company
expects to commence drilling on schedule by the end of March
2021.
Planning has evolved since the 'H1 2021 Drilling Update' made on
20 January 2021. All of the wells are of the slim hole type and
located near existing facilities so that they can be placed on
production with no material delay or cost.
The first well to be drilled will be LB-1002 in the Las Bases
field as previously announced. It is a gas well targeting the
Centenario formation with a target depth of 1,300 metres, time to
drill is estimated at 10 days and a projected cost of US$1.4
million. As indicated in the previous announcement, President
projects 40,000 m(3) /d (1.4 MMsft/d or circa 230 boepd) initial
production. The original projected depth of the well has been
extended to take in further deeper potential pay zones in the
formation shown in the seismic data. Extensive logs will be taken
to improve understanding of the formation and its
produceability.
The second and third gas wells will now be at the Estancia Vieja
field. These are twins of old wells that have suffered casing
collapses, but prior to which showed proven gas production. The
wells EV-1001 twinning the old well EV x-1 (which produced in
December until the collapse) and EV-1002 twinning the old well EV-4
have each a target depth of 1850 metres, an estimated drilling time
of 12 days and a cost of US$1.6 million. The Company projects
initial production from each of these wells at 60,000 m(3) /d (2.1
MMsft/d or circa 350 boepd).
As so far President has produced from only one well in the
Centenario formation namely the old but newly perforated well LBx1,
the interposing of the Estancia Vieja wells should allow
consideration of the logs and initial production testing of LB-1002
with a view to determining the nature of follow-on wells at Las
Bases. It is expected that the above three firm wells will be
completed and in production during May. The timing of any follow-on
wells at Las Bases will be provided once these wells, as per the
above, have been determined.
In parallel to the above work, again as previously announced, in
the next few days the new well LB-1001, drilled and completed in Q4
2020, will be subject to a workover to perforate and produce from
the original main target interval in that well, being the Intra-
Loma Mantosa formation. It is anticipated that initial production
from that interval of some 26 metres total net thickness will be
80,000 m(3) /d (2.8 MMsft/d or 470 boepd). This interval should
provide longer life and less water production than the lower much
thinner section which had very good initial production but is
currently being produced with a high percentage of water.
As anticipated, spot gas prices in Argentina, even still in the
summer months, have shown increases with a level of US$2.5 per
MMBtu currently and rising. President now projects spot gas prices
possibly reaching US$3.5 per MMBtu in the five winter months
commencing in May .
Peter Levine, Chairman, commented
"President continues on its stated work trajectory with a
prudent level of optimism supported by robust pricing for our gas
offerings.
"The mission is to make our average production more robust,
increase our well stock to greater insulate us against the
inevitable well down times, benefit from economies of scale using
our own pipeline infrastructure and get these gas wells drilled on
budget and in time for the more favourable winter price
environment."
Glossary:
All projections of production are mid-case estimates
Boepd barrels of oil equivalent (oil and gas) per day
M(3) /d means cubic metres of production of gas or oil as the
case may be
MMBtu Million of standard British thermal units
MMsft/d million standard cubic feet of gas per day
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor)
Christopher Raggett, Charlie Beeson +44 (0) 207 220 0500
Shore Capital (Corporate Broker)
Jerry Keen, Antonio Bossi +44 (0) 207 408 4090
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.
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
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END
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