President Energy has provided an update on its Argentine and Louisiana operations.
WELL DP 1002 S/T, 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," the company said.
"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-degrees, 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.
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%.
LOUISIANA ASSETS PRODUCTION
"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."
At 9:20am: (LON:PPC) President Energy Plc share price was +0.38p at 11.13p