Source - RNS
RNS Number : 1722L
President Energy PLC
29 September 2016
 

29 September 2016

PRESIDENT ENERGY PLC

("President Energy" or "the Company")

Operational Update

 

President Energy (AIM: PPC), the oil and gas exploration company provides the following update on its Argentine and Louisiana operations.

 

Well DP 1002 S/T, Dos Puntitas Field, Puesto Guardian Concession, Salta, Argentina.

The well remains on target to reach full production around the end of the first half of October, subject, as stated in the previous RNS of 2 September 2016, to successful operational execution.

Whilst, further to that announcement, certain cementing issues were encountered causing further delay, subsequent drilling has proceeded satisfactorily.  President Energy has now successfully intercepted the target Yacoraite producing formation at a measured depth of 3740m and an inclination of 84°, at which point, notwithstanding the heavy oil based drilling mud being used of 11 lbm/gal*, the expected increase in C1-C5** hydrocarbon gas readings were seen through the mud logs. The well was then drilled down to the casing point of 3756m measured depth with the continued presence of these elevated hydrocarbon gases. The hole is now being prepared for running casing down to the Yacoraite whereupon the production horizontal leg will be drilled at or around horizontal and, subject to all being in accordance to plan, the well completed.

Production in Puesto Guardian Concession, Argentina

Daily production for the first 25 days of September is averaging approximately 500 bopd.

Further to the Company's previous RNS on 2 September 2016, a Halliburton Coiled Tubing Unit ("CTU") has been contracted and is ready to be mobilised to the Puesto Guardian fields awaiting a final regulatory permission for road transport, anticipated to be obtained this week. The CTU is due to start work shortly and will be combined with a stimulation programme on four non-producing wells. Management estimates that the CTU work on those wells will yield an increase in total field production in the region of 20%.

 

Production from Louisiana assets

The A55 well, one of the two wells referred to in the Company's previous RNS, has now come on stream.  The Company is waiting for the non-operated Triche well, previously producing 60-70 boepd net to President Energy, to come back on stream, after being out of effective working commission for approximately six months due to pipeline issues.

The Company expects the Triche well to come back on-stream in about 14 days, at which point, the Company should see its share of total net production in Louisiana increase to the 200-250 boepd levels projected in the previous RNS.

 

Peter Levine, Chairman, Commented

"In the face of unforeseen issues we are nevertheless pleased with the achievement so far in the well DP 1002 S/T. We are on trajectory and have intercepted the target Yacoraite producing formation on or about geological prognosis with the expected increase in hydrocarbon gases."

"The mission is now to case the well to the producing formation, then drill the horizontal leg and complete successfully.

"Elsewhere, we continue to target incremental gains on production where they can be cost effectively achieved."

*pounds weight per gallon

**C1-C5 hydrocarbon gases are respectively methane, ethane, propane, butane and pentane

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

 

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.

 

 

Contact:

 

President Energy PLC

Peter Levine, Chairman

Miles Biggins, COO

 

 

+44 (0) 207 016 7950

+44 (0) 207 016 7950

 

 

Peel Hunt LLP (Nominated Advisor & Joint Broker)

Richard Crichton, Ross Allister

 

 

+44 (0) 207 418 8900

 

BMO Capital Markets

Neil Haycock, Tom Rider

and Jeremy Low

 

+44 (0) 207 236 1010

 

 

Vigo Communications

Chris McMahon

Patrick d'Ancona


+44 (0)20 7830 9700

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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