President Energy today provided an operational update with regard to the newly drilled well EV-1001 at the Estancia Vieja field, Rio Negro Province, Argentina

Map source: President Energy

Highlights

• New well EV-1001 drilled, logged and cased on time and budget
• Electric and mud logs together with petrophysical review identify net gas pay as expected and support pre-drill projection of an initial production of 60,000 m3/d
• The rig is now moving off location to the next well, EV-1002, also at the Estancia Vieja field, which move will take up to 4 days with spudding currently projected within approximately 7 days
• The new well EV-1001 will now be completed with a coiled tubing unit and production is slated to commence in the first half of May taking advantage of higher gas prices
• Completion of the new well LB-1002 currently in progress, with further news anticipated at the start of May
• Plans continue for significant investment in Salta Province, Argentina in H2 2021 focused on delivering material new oil production by the year end to benefit from more stabilised oil prices

Drilling programme Rio Negro Province, Argentina

The new well EV-1001 at the Estancia Vieja field, Rio Negro, Argentina has now been successfully and safely drilled to the target depth of 1,850 metres, logged and cased on time and budget. This well was designed as a twin to the formerly producing gas well EV-x1 which suffered a casing collapse rendering it irreparable.

The electric and mud logs together with petrophysical review are all in accordance with pre-drill expectations and are aligned with those from its twin well EV-x1 which was drilled in 1988. A total net gas pay of 11 metres has been identified with good average porosity of 27%.

Such results support President's pre-drill projection of an initial production of some 60,000 m3/d (2.1MMsft/d or circa 350 boepd). The well will be completed using the same coiled tubing unit currently working on completing the earlier drilled well LB-1002. It is therefore projected that this well EV-1001 will be tested and then placed on production during the first half of May.

In the meantime, the rig is being moved to the next location to drill the well EV-1002 also at the Estancia Vieja field, Rio Negro Province. This will take up to 4 days with spudding of this well expected to take place within the next 7 days.

Puesto Guardian Concession, Salta Province, Argentina

Plans for the extensive work programme in Salta continue to progress. Advanced negotiations are taking place with regard to the acquisition of some 100km2 of 3D seismic as well as preparations for three new oil production wells at the Dos Puntitas field within the Concession.

It is anticipated that the seismic work will be awarded before the end of June with work to start during Q3 2021. Discussions are taking place with rig contractors. It is currently anticipated that drilling of the three wells will commence at or around end Q3 2021 subject to all appropriate permissions being in place.

Peter Levine, Chairman, commented,
"Whilst this was a twin well, nothing can 100% be taken for granted downhole. The result of EV-1001 is pleasing in that it is as anticipated and reflects the continued professionalism shown by all our operating divisions in Argentina at a continued difficult and disruptive time for the country.

"With spot gas prices in our region currently increased to some US$4 MMBtu, every piece of incremental gas production delivered direct to the market through our owned and operated gas pipeline is beneficial to our bottom line.

"That is why the H1 2021 story for us is gas with one more firm well in Rio Negro to drill and further work in Las Bases still under review.

"However, in H2 for President it's all about oil. We will return to Salta Province in that period with some serious investment. President has an extensive work programme of new 3D seismic acquisition and a three well programme aimed at both identifying new well locations in previously prolific structures and importantly by the end of the year materially increasing oil production in the Province to take the benefit of higher oil prices.

"Our busy year therefore continues with many work streams conducted in parallel. We will keep the market regularly updated".