President Energy (LSE:PPC) gave an update on its drilling campaign in the Rio Negro Province of Argentina today. The company owns a 90% working interest in the Puesto Flores/Estancia Vieja Concession and is the operator of the asset. The remaining 10% interest is held by the provincial energy company, EDHIPSA.
President acquired the concession from Chevron in September 2017 and extended the license terms until November 2027. Peak production reached around 3,800 bopd in 2013 before the field entered decline due to Chevron shifting their focus to larger fields. As of August 2018, President’s current normalised net production across all areas is approximately 2,700 boepd of which 95% is oil with the balance being gas from it’s Louisiana assets.
The first newly drilled well at the Punta Rosada primary target formation is now tied in and producing at the rate of 600 bopd. The well actually hit an initial flow rate of 1000 bopd but has been choked back to manage the reservoir. The secondary target, Pre Cuyo, found 200 metres lower down in the well, achieved flow rates of 240bopd and has been temporarily isolated to produce at a later date.
Testing of a second well, PFE 1001 which has shown 43 metres of total net oil pay will commence next week and the well will be put on production. Meanwhile, the drilling rig moves on to drill the third and final well of this year’s drilling campaign for President, PFO 5000.
At the present time, the company maintains its guidance of approximately 200 bopd targeted production from the PFE 1001 and PFO 5000 wells
Peter Levine, Chairman and Chief Executive of President poetically commented:
“President’s progress continues with the results from the first well speaking far more eloquently than any words that can be written”.