President Energy, the energy company with a diverse portfolio of production and exploration assets provides an update in relation to its drilling operations in Rio Negro, Argentina.

Highlights

• Well LB-1001 drilled down to the TD of 1,700 metres on time and on budget
• The well has now been logged and cased
• The logging results are in line with the anticipated probable pre-drill estimates for reserves and production potential (Targeted reserves of 6 Bcf and production of 100,000 m3/d being 588 boepd)
• The full suite of electrical logs and pressure point tests indicate net gas pay of 54 metres over six formations with overall good permeability and porosity
• The Rig is now moving to the next well with the workover rig due to come complete the well shortly
• Subject to successful testing the well is expected to be on production by the end of next month

Drilling programme

The LB-1001 development well has now been drilled to the target depth of 1,700 metres. A full suite of open hole electronic logging has been performed and the well was then successfully cased and cemented. Costs for the well drilled, cased, completed and tested are expected to be within the US$1.9m budget.

The electronic logs indicate a total of 54 metres of net gas pay spread of 6 formations which are in line with pre-drill expectations and likewise in line with the offset former producing well of LB-x1.

The main formations of interest show generally good permeability and porosity with ranges from 15%-20%. The results so far therefore support the pre-drill probable (P50) expectations both as to initial gas production (100,000 m3/d being 588 boepd) and targeted reserves of 6 Bcf, but as always the key will be in the testing and reservoir performance under production conditions.  

The drilling rig is now preparing to move to the previously announced exploration well EVN-1, whilst the workover rig is now being moved to LB-1001 for completion and readiness for testing. Subject to the latter proceeding satisfactorily it is expected that the well will be put on production by the end of November.

KeyFacts Energy: President Energy Argentina country profile