Highlights:

• Two workovers successfully completed ahead of time and under budget on wells PFO-50 and PFO-9
• New untested intervals totalling 11 metres net perforated in PFO-50 - results ahead of expectations - on production still stabilising at c. 400 bopd - 100% increase from the pre shutin output
• PFO-50 formerly producing interval repaired and successfully tested, regaining pre shut-in levels of production on test. Section isolated to be kept in reserve for future production due to success of new perforated section
• Well PFO-9 formerly producing interval back on stream; production still stabilising at 100 bopd
• Total current gross field production increased to approximately 1,500 bopd with expected further increases from the remaining two workover wells
• Rig at next well location and work has commenced - next two wells have previously untested virgin potentially oil producing intervals perforated as per PFO-50
• Company expects to receive US$60.80 per barrel for its December oil from Puesto Flores Concession

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina announces successful results from its first two workover programme wells at the Puesto Flores Field, Rio Negro Province, Argentina. Wells PFO-50 and PFO-9 were worked-over ahead of time and under budget at a total cost of US$920k versus a budget of US$1.122 million.

The first phase of the workover on well PFO-50 successfully repaired the well which was put out of action in October 2017 due to a lightning strike in an electrical storm. The originally producing interval was successfully tested, regaining pre shut-in levels of production.

In accordance with the work plan, prior to placing PFO-50 on stream, the untested up-hole intervals totalling 11 metres net were perforated. The results were beyond expectations, so much so that the original producing section downhole has not been comingled and accordingly has been isolated to be kept in reserve for future production. The well is now on-stream solely from the new intervals and, with the aid of an electric submersible pump, production is still stabilising at approximately 400 bopd representing an increase of over 100% from the previous pre shut-in production output. 

The successful production of oil from these previously untested intervals in PFO-50 has a positive beneficial read across for future production and prospectivity in the field, the extent of which is currently being studied by President's technical team.

Well PFO-9 has been successfully worked-over to repair a hole in the tubing and is now back on production. Production is still stabilising and the well is currently contributing some 100 bopd.

The rig is now at the next well location and work has commenced. These final two wells of the four well work programme, each with reported holes in tubing, will, in addition to being repaired, have previously untested virgin potentially oil producing intervals perforated.

Total current gross field production concomitantly increased to approximately 1,500 bopd with expected further increases from the remaining two programme wells.

In relation to oil prices, President expects to receive US$60.80 per barrel for its December oil from Puesto Flores Concession. 

Peter Levine, Chairman and CEO, commented,
"It is very encouraging to start our workover programme at Puesto Flores with a significant production contribution from previously untested oil intervals, substantially ahead of what we had expected. The increased production, together with the current increased level of realisable oil prices gives a further boost to our current positive cash flow.”