President Energy, the energy company with a diverse portfolio of production and exploration assets, announces a drilling and workover update on various of its assets.

Puesto Guardian Concession, Salta Province, Argentina

The Company has signed a drilling services contract for three firm wells to be drilled at the Puesto Guardian Concession before the end of this year. The contract also includes an option to retain the rig into the New Year for a further two wells after drilling of the third firm well.

This will enable continued drilling in the Concession, should the results from the ongoing seismic reprocessing confirm two additional prospects that have been previously identified.

The first three wells will be drilled in the Dos Puntitas field and the two contingent wells for 2022 in the Pozo Escondido field.

Each well is estimated to cost US$3.5 million and have a drilling time of 45 days with a mean success case initial projected oil production of 40 m3/d (250 bopd).

Site clearance for the first well has begun with the rig due to be mobilised during the first days of October. Drilling of the first well is now expected to commence by the end of the third week in October with drilling of all three wells expected to be completed by the end of the year with the final well in that sequence expected to be on stream in the first part of January 2022.

Triche and Simmons 2 wells, Louisiana

Both these wells remain offline as they have for the last three months awaiting workover of the Triche well to reinstate production. The operation of the Triche well is required for the Simmons 2 well to operate, as the Simmons 2 well used the gas produced from the Triche for gas lift.

The Triche well has not performed optimally all year due to the progressive breakdown of the downhole gravel pack in the well used to constrain sand production. The frustrating delay in fixing the problem has been materially exacerbated by the effects of Hurricane Ida which devastated the locality.

A rig is now available, but the Company is awaiting barge availability. It is hoped that the workover will be completed by the end of October and the wells will work at the levels enjoyed last year namely at 300 boepd net to President half being oil. Realisation prices are robust with oil currently at approximately $70 per barrel. Reserves levels are unaffected with lower than expected depletion due to the constrained production.

Peter Levine, Chairman, commented
"We look forward to the drilling campaign in Salta. With current prices there comparable to Rio Negro and fixed opex already covered by existing production, the incremental production will make a good contribution to Group.

"Louisiana, for various reasons out of our control, has been frustrating for much of this year. However we are close to being back on track. Nevertheless, the events have given management cause to assess the future of our Louisana assets within the Group and we will do so at or around the end of the year once the wells are back online and have been producing for a period".