President Energy PLC Workover and Drilling Update (6499Z)

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RNS Number : 6499Z

President Energy PLC

22 September 2020

22 September 2020

PRESIDENT ENERGY PLC

("President" or the "Company")

Workover and Drilling Update

President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets provides an update in relation to its operations in Rio Negro, Argentina as well as the release of the unaudited interim results for H1 2020.

Highlights

   --     First well in drilling programme spudded with results due mid-October 
   --     Successful multi workover programme continuing 
   --      Interim results for the period ended 30 June 2020 to be released by 30 October 2020 

Workover Programme

The workover to replace an electric submersible pump in the oil producing well PFE-1001 has been successfully completed and the well is now back on stream and cleaning up. Prior to shut-in the well produced 16m(3) /d oil (100 bopd).

The workover rig then moved to PP-13, a former oil producer, that was shut in for more than one year awaiting repair. The remedial work has now been completed and the well is being placed back online. Prior to shut-in the well produced 7m(3) /d oil (44 bopd).

The rig has now moved to EV-20, a well which has not produced during President's operatorship of the Puesto Flores/Estancia Vieja Concession. The mid-case objective is to achieve initial gas production of 40,000 m(3) /d (235 boepd).

Further wells to be worked over include PFO-26, an injector well being part of the Company's secondary recovery pilot project for the Puesto Flores complex, the currently shut-in oil producer PFO-35 to bring it back into production and PFO-6, a water disposal well requiring repair.

Interposed with this programme will be completion of the two new wells in the drilling programme as set out hereunder.

All workover operations have to date been completed on time and on or below budget.

Drilling programme

The LB-1001 development well has now been spudded.

As previously announced, the intended target is attic gas in the Las Bases structure with a target depth of 1,700 metres and a high chance of success. The P50 estimate is for 6 Bcf of recoverable gas and an initial production well rate of 100,000 m(3) /day (588 boepd).

A further announcement will be made once target depth is reached and logging of the well has taken place, estimated to be achieved in or about the middle of October.

After drilling of LB-1001, the drilling rig will move to the previously announced exploration well EVN-1, in relation to which further details will be announced in due course.

Interim results

In light of delays caused by the Covid-19 epidemic and in accordance with guidance published by the London Stock Exchange in respect of the temporary measures for the publication of half-yearly reports for AIM companies pursuant to AIM Rule 18 of the AIM Rules for Companies, President announces that it will publish its half year report for the period ended 30 June 2020 on or around 30 October 2020.

Glossary:

Bopd means barrels of oil per day

Boepd means barrels of oil equivalent (oil and gas) per day

EV means the Estancia Vieja field in the Puesto Flores/Estancia Vieja Concession, Rio Negro, Argentina

LB means the Las Bases Concession, Rio Negro aforesaid

M(3) /d means cubic metres of production of gas or oil as the case may be

PF means the Puesto Flores field in the aforesaid Puesto Flores/Estancia Vieja Concession

PP means the Puesto Prado Concession, Rio Negro aforesaid

Contact:

 
 
   President Energy PLC 
   Rob Shepherd, Group FD 
   Nikita Levine, Investor Relations       [phone] 
 finnCap (Nominated Advisor) 
  Christopher Raggett, Charlie Beeson    [phone] 
 
   Shore Capital (Corporate Broker) 
   Jerry Keen, Antonio Bossi               [phone] 
 Tavistock (Financial PR) 
  Nick Elwes, Simon Hudson               [phone] 
 

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 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 Group as well as the international commodity trader and logistics company Trafigura, an in-country management team as well as a Board whose interests are aligned to those of its shareholders, President Energy gives UK investors access to the Argentina 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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September 22, 2020 02:00 ET (06:00 GMT)