20th Oct 2016 09:01
LONDON (Alliance News) - President Energy PLC on Thursday said work was continuing at its project in Argentina, while production at its Louisiana, US operation is picking up.
Oil and gas exploration company President Energy said its coiled tubing programme at its Argentina project is progressing and operations have commended on the second of the expected five-well campaign.
President Energy said the intervention on the first well at the site, Poso Escondido 3 had provided "valuable information" on the Yacoraite resrvour at this location and has flowed a limited amount of oil to surface.
Although the stimulation and extended testing "could not be carried out due to a tubing leak", President Energy said the operation demonstrated the Yacoraite reservoir remains "without significant depletion" and is capable of flowing oil without artificial life.
The analysis and investigation into the drilling of DP1002 S/T on the Puntitas field continues but a resumption of drilling remains suspended. The company earlier this month was forced to temporarily suspend one of its wells on the Puesto Guardian concession in Argentina after a piece of equipment broke off and fell into the hole.
Meanwhile at its project in Louisiana, production currently stands at around 220 barrels of oil per day with oil prices becoming "more robust" and gas prices showing an increase of more than 73% over the last six months. Gas represents 23% of President's current production in Louisiana.
President said it was estimating around USD150,000 profit after tax from the Louisiana operation in the fourth quarter of 2016. In effect, this amount also represents the free cash generation from the operation, President added.
In Paraguay, President noted the "strengthening relations" with a neighbouring company Petro AP, which has been drilling a well around 7 kilometres from the boundary of President's Pirity concession. Petro is further conducting a 2D and 3D seismic data acquisition campaign over Selva Maria and surrounding acreage that extends right up to the Pirity concession boundary on the Paraguay border,. President added.
The company said it is of the view that Petro is "drilling in a deep and hot section of the Olmeda Basin and news of saleable oil production and seismic activity, 7 kilometres from the border with President Energy's Pirity concession, is of potentially significant interest".
President also noted that, elsewhere in Paraguay, it has decided to move forward with its Pilcomayo site and has made a contract application for prospection, exploration and exploitation of that area. The application is currently being considered and a response should be received before the end of 2016.
Shares in President were up 5.0% at 7.43 pence on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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