President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update on its current drilling programme at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina (President 90% and operator - EDHIPSA 10%).
The PFO 1001 development well at the Puesto Flores field, being the first of a three well sequence, has now been successfully drilled, cased, cemented and logged on time and on budget and is now awaiting completion with a workover rig. The results obtained to date are at the upper end of expectations.
The well was drilled to a total vertical depth of 2,359m with oil shows in at least three different formations, cuttings demonstrating bright yellow flourecence under UV light and live oil coming to surface over the shakers. Commendable peak gas readings while drilling reached up to nearly 1 million ppm with the range of C1 to C5 gas present.
As well as the mud logs, a full suite of electronic logs were successfully obtained showing hydrocarbon presence in the primary Punta Rosada formation as well as in the deeper Pre Cuyo and shallower Lotena formations. According to the logs net pay is above 23m with good to excellent porosity ranging from over 18% to some 25%, the latter importantly being in the primary target zone, with original pressure and good permeability.
A completion rig will be mobilised for early November to test and complete the well where upon it will be tied in as a producer. At that stage a further announcement on flow rates will be made.
After a detailed inspection and rig repairs, the drilling rig is now moving on to the next well, PFE 1001, which is expected to spud shortly.
Peter Levine, Chairman and Chief executive commented:
"Whilst the acid test is that of flow rates which we anticipate for November, the delivery of a successfully drilled well and the results so far obtained are all very encouraging.
"When we commenced this three well programme, we stated that we were targeting an initial 600bopd contribution in aggregate from those three wells. Whilst we still need to complete this well successfully and drill and complete the next two, based on the evidence to date, we now view the achievement of this target with increasing confidence."
Victor Linari, Master in Geology and Member of the Society of Exploration Geophysicists, who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
