TIDMPPC
RNS Number : 1081V
President Energy PLC
12 April 2021
12 April 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Drilling update
Drilling success at LB-1002
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets focused primarily in
South America, provides an operational update with regard to the
newly drilled well LB-1002 at the Las Bases field, Rio Negro
Province, Argentina
Highlights
-- New well LB-1002 drilled, logged and cased on time and budget
-- Both electric and mud logs identify and confirm pre-drill
expectations of gas pay in the Centenario formation with good
permeability and porosity
-- The rig is now moving off location to the next well, EV-1001
at the Estancia Vieja field, Rio Negro which will take 5/6 days,
with spudding currently projected in approximately 10 days
-- The new well LB-1002 will now be completed with a coiled
tubing unit and production slated to commence by the end of
April
Drilling programme Rio Negro
The new well LB-1002 at the Las Bases field, Rio Negro,
Argentina has been successfully and safely drilled to the target
depth of 1,302 metres, logged and cased on time and budget. The
well unexpectedly encountered certain swelling shales when drilling
which affected progress downhole but these issues were successfully
overcome and caused no difficulty in running the pre-drill designed
slim hole casing.
The electric logs aligned with the mud logs holding no surprises
and identify a total of approximately 7 metres (23 feet) of net gas
pay in one contiguous sandstone interval of good permeability and
porosity (the latter being estimated at 20-25%) in the Centenario
formation which was President's target. The results support
President's pre-drill projection of an initial production of some
40,000 m3/d (1.4 MMsft/d or circa 230 boepd) which is subject to
the forthcoming testing. The well will be completed during this
month using a coiled tubing unit which will be mobilised to site
within approximately the next 14 days, with the well projected to
be on production by the end of this month. As previously announced,
once President has reviewed the initial production data, a decision
will be then made as to future drilling in the Las Bases field.
In the meantime, the rig is being moved ("Drilling, Transport,
Mobilisation", or "DTM") to the next well EV-1001 at the Estancia
Vieja field, Rio Negro Province. This will take some 5/6 days with
spudding of this well expected to take place within the next 10
days. The subsequent well, EV-1002, is also at the Estancia Vieja
field and accordingly the DTM to that well will be faster.
Peter Levine, Chairman, commented
"Whilst downhole the well was a tad trickier than expected, the
new well LB-1002 was drilled, logged and cased on time and
budget.
"It's very much step by step but it's good to get the first well
of the programme drilled successfully and under our belt. We now
move to the completion and the test of initial production with all
present indications together with analogue well comparison
supporting our pre-drill production estimates of volumes.
"Our drilling programme in Argentina continues in the Estancia
Vieja field and further announcements will be made in due
course.
"All other material workstreams including but without limitation
Salta, the treatment plan and Paraguay farm-out are on track and
proceeding in accordance with expectations".
Glossary
Boepd means barrels of oil and gas equivalent
Mmsft/d means Million standard cubic feet of gas per day
M3/d means million of cubic metres of gas per day
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Charlie Beeson +44 (0) 207 220 0500
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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