President Energy (LSE:PPC) rose 3.9pc to 9.6p today after surpassing its target of exiting 2018 with 3,000boepd production. The company entered 2019 with net oil and gas output of around 3,300boepd, an increase of more than 50pc year-on-year.
Production is primarily coming from fields called Puesto Flores and Puesto Guardian. These are part of the group’s portfolio of assets in the Rio Negro province of Argentina. Further gas production will come from fields called Las Bases and Estancia Vieja by the end of March.
President also said a new well called PFO 1005 has now entered production. As it stands, the well is producing at around 250bopd, exceeding expectations. President drilled PFO 1005 last month at Puesto Flores as the final target in a three-well drilling campaign.
The firm enjoyed 100pc success in the drilling campaign, with all wells now in production. It now expects to report a significant increase in 1P proven reserves across Rio Negro in its next reserves audit. This is due in March.
Today also saw President outline its planned operational activity for the current quarter. This includes preparing a new Rio Negro drilling programme for Q2 and a workover campaign for shut-in wells at Estancia Vieja and another field called Puesto Prado.
It will also plan an exploration programme in Paraguay and prepare a four-well drilling programme in Louisiana. Finally, it will work to cut operational costs and increase margins and production.
Chairman Peter Levine said President will deliver growth and profitability organically and by acquisition this year.
‘The expected significant increase in Proven reserves from our Rio Negro assets underlines the material improvement in shareholder value achieved last year,’ he added. ‘Whilst President’s 2P Proven and Probable reserves and extensive resources are important to demonstrate future potential, the essential core value of our business is reflected by proven hydrocarbon reserves particularly with greater emphasis from the higher value-added Rio Negro fields.
‘President continues to maintain a 360 degree focus on every aspect of the business from new production, reserves and reservoir management to the crucial aspects of cash management and control of G&A costs and expenses.’