President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, announces an accelerated programme of workovers and drilling activity at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina.
The major workover programme follows the success of the four well workover programme conducted in Q4 2017, the results of which were substantially ahead of management’s expectations and increased both production from new perforated zones and reserves.
- Six-Eight well workover programme at Puesto Flores to commence during May 2018.
- Total costs for the workovers are estimated to be US$3 million with an expected payback of under one year.
- Accelerated three well drilling programme also at Puesto Flores now being planned to commence in Q3 2018 with the applications for surface permits underway.
- Each successful new well is estimated to have a payback of under 24 months.
- Long term tests of gas wells at Estancia Vieja projected to commence by June 2018.
- All work to be funded from President's existing resources.
President will be conducting a six-eight well workover programme at its Puesto Flores field commencing next month. The workovers will include both necessary remedial work to three wells and the workover of other wells which are either non or low producers. In all cases other than two, new potentially produceable hydrocarbon zones will be perforated. These workovers will be complemented by the workover of a water injector well. Total costs for the workovers are estimated to be US$3 million with an expected mid-case payback of under one year. These workovers are projected to increase production from the Puesto Flores field whilst mitigating natural decline rates.
President has also commenced the planning of an accelerated three development well drilling campaign also at the Puesto Flores Field, targeting proved undeveloped reserves in existing producing reservoirs. The project is an enhancement to the single well previously planned for 2018. The application process for surface location permits has been initiated with the relevant authorities. Each well will be drilled to approximately 2750 m at a cost of approximately US$3 million per well. Negotiations are taking place with our partner in the field, Edipsha and with contractors. Subject thereto it is planned to commence work in Q3 2018 and be completed during that quarter or shortly thereafter. Each successful well is estimated to have a mid-case payback of under 24 months.
Following on from the short term gas well tests at Estancia Vieja field, longer term tests are now being planned for three to four gas wells and these are projected to commence in June 2018. The results of these tests will assist President in determining the best way to monetise its gas as well and the extent of its gas reserves in that field.
Peter Levine, Chairman and CEO, commented:
"Time flies and with six months already gone since we acquired the Concession, so must we.
"Therefore, encouraged by the success so far, and taking advantage of current oil prices and cash flow, we are moving forward with an advanced programme, substantially ahead both of our original plans and our commitments to the Rio Negro Province.
"In the meantime, work progresses on our listing in Argentina where we are projecting to join the market sometime in late July 2018”.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/17042018/president-energy-plc-major-workover-programme-planned-to-commence-in-may/