President Energy Provides Operations Update

President Energy has provided an update on its operations in Argentina.

Salta operations update

Well DP-2001

The first of the wells drilled in the current programme at the Dos Puntitas field, Puesto Guardian Concession is now in production and flowing the first commercial oil from a new well in the Concession for the first time in the last 12 years.

It is early days and the Company is in the process of testing to assess optimum steady state levels and performance. The positive news is that the well is successfully cleaning up and producing 90% oil with little water. Further announcements will be made after the well has been stabilised.

Well DP-2003

The second well in the programme is being tested with results expected to be able to be announced by the end of this week.

Secondary recovery project Puesto Flores Concession, Rio Negro

One of the important objectives in Rio Negro is to mitigate natural production declines in mature fields as well as sweeping as much oil as possible to enhance total recovery factors in a profitable way.

The Company has previously announced a successful pilot waterflood programme in a small part of the field. President has now received a detailed plan from independent experts which is optimistic that a successful secondary recovery campaign to fulfil those key objectives can be achieved. This comprises of both utilising existing wells and drilling new injector wells.

This is not an overnight process nor will there be instantaneous results as with all waterflooding. The Company will now proceed to obtain all necessary consents and make preparations to roll out the project on a step by step basis in the Puesto Flores field. The field work and injection subject to consents is projected to start mid this year with results of the first section of injections likely to be seen in twelve months. It is necessary to review progress and pressure response at each stage.