12th Mar 2018 12:20
President tested three wells on the field: EV 7, EV 13, and EV 19.
EV 7 produced gas condensate of 50 barrels of oil per day, with a small amount of gas, on a 24-hour test. President found a liquid column in the tubing which held up gas flow, and this will need to be remedied, it said, but even these limited results suggest it could be a successful well.
At EV 13, President said results were "very good" in a 48-hour test. The well produced gas with equivalent daily rates from 200 barrels of oil equivalent per day to 280boepd, with pressure stable.
Results at the third well, EV 19, were "excellent" and beyond expectations. Daily rates were between 210boepd to over 530boped.
There are now three further gas wells viable for testing, President said, and it hopes to reactivate the field in late 2018. Work is ongoing to assess the volume of the procuedable accumulation. At the end of 2017, it said, the reserves at Estancia Vieja were not material and these could increase.
Once President has evaluated the site it will work out the best production methods with first gas targeted for towards the end of 2018.
The wells, the company said, were drilled over a decade ago and have been shut-in since at least 2011.
Chairman & Chief Executive Peter Levine said: "The encouraging results of these tests demonstrate a produceable and viable gas field at Estancia Vieja to complement our successful oil business at the adjacent Puesto Flores field.
"We are currently considering the optimum way to develop the field potential with the target of generating first gas production in the latter part of this year. We are excited by this additional opportunity that will further diversify the company's portfolio of cash generative production assets."
President shares were up 3.4% on Friday at
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