President Energy Reports Successful Testing Of 2nd New Argentine Well

Instant Max AI

(Energy Analytics Institute, Aaron Simonsky, 7.Dec.2018) — The PFE 1001 well has now been successfully completed and tested. Both the secondary, Pre Cuyo, and primary, Punta Rosada, targets successfully produced oil and as with the predecessor well, PFO 1001, the secondary target was isolated to be kept in reserve to produce at a later date, President Energy announced in an official statement on its website.

The Punta Rosada, having tested at the rate of approximately 400 barrels per day (b/d) of oil with nearly zero water and good downhole pressure, will be on line by December 10, 2018 with a similar level of initial production expected. This flow rate is substantially ahead of President’s initial expectations of 200 b/d and would provide pay back on the well within 12 months on the basis of current oil prices and expected decline rates.

“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,” announced President Energy Chairman and Group CEO Peter Levine.

Well PFO 1005

Drilling of the PFO 1005 development well at the Puesto Flores field, the last of the current three well sequence, is proceeding as planned and is currently drilling at 2,000 meters with a target depth of 2,700 meters.

President retains its pre-drill guidance of 200 b/d for the target production of PFO1005.

Payment of PF/EV acquisition cost

The final part of the deferred consideration payable to the Rio Negro Province of $1.8 million has now been paid, meaning the full acquisition cost of PF/EV has been discharged.

The deferred consideration paid by President during 2018 was $7 million, all paid from the company’s own funds.

“President’s stringent focus on G&A, opex, margins and cash flow as a dollar based business in Argentina means that it is in a strong position to benefit from increased production whilst providing downside protection against any oil price volatility or inflation,” said Levine.

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