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President Energy PLC (PPC)

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Tuesday 18 December, 2018

President Energy PLC

Drilling success at Puesto Flores, Argentina

RNS Number : 7505K
President Energy PLC
18 December 2018
 

18 December 2018

 

PRESIDENT ENERGY PLC

("President", "the Company" or "the Group")

 

Drilling success at third new well at Puesto Flores, Rio Negro Province, Argentina

Logs show good net pay in line with pre-drill expectations

 

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update relating to the Puesto Flores Concession in Rio Negro Province, Argentina (President 90% and operator - EDHIPSA 10%).

 

Highlights

·    PF0 1005, the third and final new well in the current drilling programme has been successfully drilled, logged, cased and cemented to 2,360 metres on time and budget

·     Both primary and secondary targets have displayed 18 metres of net oil pay to be perforated in line with pre-drill expectations

·     The drilling rig is now being demobilised and testing and completion with the workover rig will commence towards the end of this week

·     The well is anticipated to come on production at or around New Year

 

Well PF0 1005

This well has now been successfully drilled, logged, cemented and cased to 2,360 metres on time and on budget.

 

Both the Punta Rosada primary target and the Lotena formation secondary target resulted in good oil shows while drilling and are shown by electronic logs to be encouraging with 18 metres of net oil pay determined to be tested having good oil saturation and porosity. The results are in line with pre-drill expectations.

 

The drilling rig is now being demobilised from the Puesto Flores field with the workover rig anticipated to commence testing and completion of the well towards the end of this week.

 

After this, the well is currently scheduled to be placed on production at or around New Year. At this time, management retains its conservative pre-drill expectations of 200 bopd initial production from this well pending successful testing and the well coming on to production. 

 

Management reaffirms its Group target exit 2018 production rate of 3,000 boepd.

 

 

Peter Levine, Chairman and Group CEO commented:

"To have drilled, logged, cased and cemented the entire three well programme on time and on budget and be producing from the first two wells ahead of expectations with the third yet to come on stream underlines just how far President has come in its operational capabilities this year.

 

"The drilling has been conducted successfully in parallel with many other operations in our various concessions in Argentina and follows on from the workover successes achieved in the first half of the year.

 

"Drilling will start up again during the course of 2019 but in the meantime diverse reactivations, workovers and infrastructure work will continue including integration of the two new Concessions in Rio Negro on which more will be said in due course."

 

 

Victor Linari, Master in Geology and Member of the Society of Exploration Geophysicists, who meets the criteria for qualified persons under the AIM guidance note for mining and gas companies, has reviewed and approved the technical information contained in this announcement.

 

Glossary

Bopd means barrels of oil per day

 

Contact:

 

President Energy PLC

Peter Levine, Chairman, Chief Executive

Rob Shepherd, Group FD

 

 

+44 (0) 207 016 7950

 

finnCap (Nominated Advisor & Joint Broker)

Christopher Raggett, Scott Mathieson

 

 

+44 (0) 207 220 0573

BMO Capital Markets (Joint Broker)

Jeremy Low, Tom Rider

 

 

 +44 (0) 207 236 1010

 

Panmure Gordon (Joint Broker)

Charles Lesser, Dominic Morley

 

 

+44 (0) 207 886 2500

Camarco Financial PR

Billy Clegg, Jane Glover, Violet Wilson

 

+44 (0) 203 757 4980

 

 

 

 

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 currently has independently assessed 1P reserves in excess of 15 MMboe,2P reserves of more than 27 MMboe, and production approaching 3000 boe/d.

 

The Company has operated interests in the Puesto Flores and Estancia Vieja Concession, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company remains focused on growing production in the near term in 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.

 

President is actively pursuing value accretive acquisitions of high-quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support (including the IFC, part of the World Bank) and an in-country management team, President Energy gives UK investors rare access to the Argentinian 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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