President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update in relation to its workover programme at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina.

Key points

• Current total Concession oil production continues in the range of 2,000-2,100 bopd with workover programme still continuing
• Planning continues for the three development well drilling programme at Puesto Flores, scheduled to commence end September 2018
• The costs of all drilling work, like the current workover programme, will be funded by President out of its own resources and facilities
• First extended gas test at Estancia Vieja of the previously untested well, EV 8, demonstrated stable production capability of approximately 200 boepd
• Second gas well, EV 19, now on extended test and expected to show capability of 250 boepd
• Size of gas container being assessed with indications that it is more than enough to provide gas generated electrical power to fully supply both fields in the Concession, providing material operating cost savings
• Initial planning in progress so that the entire Concession will be self-sufficient in power by late 2018/ early 2019

Current oil production
Work on the current workover campaign is continuing with two wells still to be completed and come on stream. Oil production from the Concession (President-90% Operator and Ediphsa-10%) is currently 2,000-2,100 bopd, an increase of approximately 70 per cent since President acquired its interest in the Concession. The financial benefits of this increase will be felt in H2 2018.

The work so far has been completed under budget and without incident, with results ahead of expectations.

New drilling
Plans are advancing to commence drilling of three new development wells at Puesto Flores commencing end of September. The rig has been secured with work estimated to last three months. 

Estancia Vieja gas tests
The extended testing of gas wells at the Estancia Vieja field is underway and has achieved successful results so far.

The first well tested was EV-8, a well not previously tested by President. It has now been determined after a series of pressure build up tests that the well, at least in the short to medium term, should be capable of stable production of approximately 1.2 MMscf/d (200 boepd). This alone is more than sufficient to generate electricity to power both the Estancia Vieja and the Puesto Flores fields, providing substantial cost savings in respect of the fields’ operational costs.

Testing has now moved on to EV-19 where initial signs are that this well is capable of stable production in the short to medium term of some 250 boepd.

Existing test data from EV-13 where a short-term test earlier in the year produced results similar to EV8, will also be used to assess the full capacity of the existing wells and field potential.

President has now commenced planning for the installation of necessary systems and infrastructure to self-generate power. The permission process and infrastructure will take time to accomplish and President will engage and consult with its partner Ediphsa and the regional authorities. Subject to the results of such consultations and the time frames to obtain required permits, it is expected that the installations can be completed by early in 2019. A further announcement will be made as plans mature including giving details of costs of implementation.

President and its partner will consider the best commercialisation of excess gas production when a better understanding is gained as to the size of the gas field at Estancia Vieja, including the existing wells, and the potential for additional future developments.

Peter Levine, Chairman of President, commented:
"The end of H1 2018 demonstrated significant progress in our oil production arising from what we can already say is a successful current workover programme.”

The second half of the year at our Rio Negro Concession is slated to be just as, if not more, busy with three new wells projected and activities relating to exploiting gas production from Estancia Vieja.”

We remain grateful for the support, understanding and assistance of our partners Ediphsa and the Rio Negro authorities"