President Energy PLC Argentina Production Update (0041I)

TIDMPPC

RNS Number : 0041I

President Energy PLC

14 June 2017

14 June 2017

PRESIDENT ENERGY PLC

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

Argentina, Puesto Guardian Concession Workover Update

Successful start to campaign

President Energy (AIM: PPC), the upstream oil and gas company provides an update on its work-over programme at its Puesto Guardian Concession, Argentina.

The Company has achieved success since commencing the slated programme of work on old shut in wells following on from the two successful workovers of producing wells earlier in the year.

Three non-producing wells have been addressed to date. Of these, Dos Puntitas 15 and Puesto Guardian 21 have now been tested at initial production levels above expectation, ranging from 100 bopd to 150 bopd per well without the need for fraccing. These wells are expected to be completed and in full production by the end of June.

The re-entry on the third well, Pozo Escondido 1, highlighted the need for remedial work on the casing, which was outside of the scope of the equipment and services readily available at this time. Whilst the well has been suspended and removed from the immediate workover sequence while its program is reviewed, the work on it to date has demonstrated that it remains a valid candidate for subsequent workover subject to it being economical to complete.

Due to the increased production at Dos Puntitas, the rig is currently carrying out a conversion of Dos Puntitas 8 into a water disposal well. These works are expected to be complete in two weeks and then the rig will return to incremental oil production workovers at the end of June.

The Company continues to target 1,200 Bopd from the Concession by the end of September.

Peter Levine, Chairman and Chief Executive commented:

"The encouraging start to the workover campaign, with better than expected results without the need of fraccing is pleasing. Whilst there is always a calculated risk when re-entering wells that have been dormant for many years, solid progress is now being achieved.

The present objective for President is clear being to increase production at the Puesto Guardian Concession from an increased number of producing wells. This aim is being addressed step by step".

Glossary

Bopd - Barrels of oil per day

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.

This announcement is inside information for the purposes of article 7 of Regulation 596/2014

Contact:

 
 President Energy PLC 
  Peter Levine, Chairman               [phone] 
  Miles Biggins, COO                   [phone] 
 Peel Hunt LLP (Nominated 
  Advisor & Joint Broker) 
  Richard Crichton, Ross Allister      [phone] 
 BMO Capital Markets (Joint 
  Broker) 
  Jeremy Low, Neil Haycock            [phone] 
  and Tom Rider                        1010 
 Vigo Communications 
  Chris McMahon 
  Patrick D'Ancona                   [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 14, 2017 02:00 ET (06:00 GMT)