7th Dec 2018 11:22
LONDON (Alliance News) - Upstream oil and gas firm President Energy PLC on Friday said the second new well at its Rio Negro concessions in Argentina tested at double initial expectations.
The well, PFE 1001 is located at President Energy's Puesto Flores and Estancia Vieja concession. Its Punta Rosada target was tested at 400 barrels per day, double the 200 barrels that were initially predicted, with almost no water.
The secondary well target, Pre Cuyo, also produced oil and has been isolated and kept in reserve for later production.
President Energy has maintained its pre-drill guidance on another Puesto Flores well, PFO 1005, which is currently drilling at 2,000 metres to a target 2,700 metre depth. An update on this well is expected later in December.
In addition, President Energy announced it made its final deferred acquisition payment for the Puesto Flores and Estancia Vieja concessions.
The final USD1.8 million has been paid with the full deferred consideration paid in 2018 totalling USD7 million.
"We are pleasantly surprised at the initial flow results from PFE 1001, a well delivered on time and budget, and are now focused on the third well in the series alongside initial work on our newly acquired Rio Negro concessions," said President Energy Chairman & Chief Executive Peter Levine.
Shares in President Energy were down 1.6% at 9.60 pence on Friday.
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