President Energy, the international energy company provides an operational and management update
Operational update
Puesto Guardian Concession, Salta, Argentina
The Company is pleased to announce that the first two wells drilled in Salta in the current programme have been in successful commercial production for over one week.
Well DP 2001, currently successfully commercially producing in the first phase of testing will within the next 10 days undergo planned stimulation in two parts under the second phase of the production testing programme. Whilst each well behaves differently there is no present evidence to expect post stimulation anything materially contrary to the stated well performance expectations in this well of approximately 250 bopd.
Well DP 2003 is in an earlier stage of first phase of production testing although it is already clearly commercial.
As such testing will continue for a period of time to optimise production and assess reservoir capabilities, the drilling rig has moved to and is in the process of setting up at well PG 13-1 at the Puesto Guardian field within the Salta Concession, some 45 km away from the Dos Puntitas field. This well is planned to be a side track from an existing well location. Work is currently projected to commence this week with timing for the drilling rig work approximately 21 days.
The benefit of the recent increased production is already being felt in Salta where realised domestic prices are currently approximately US$60 per barrel.
South Louisiana, USA
The workover at the Triche well has now been successfully completed and President is pleased to advise that both this well and the Simmons well are back on normal production as from 25 February.
The Triche well is still settling down producing 180 bopd gross with 60 boepd of gas. The Simmons well is estimated to be producing 50 bopd gross.
Management update
The Company is pleased to announce that it has recruited Daniel Musri, an Argentine national, to the position of CEO of President Argentina . Whilst it is a non-main board position, Daniel has overall responsibility for President's operations in that country. Daniel, who joins us from Vista Oil and Gas , the Mexico /Argentina public oil and gas company, is a reservoir engineer by training and, prior to Vista, worked for 10 years as Vice President for Schlumberger in their Production Management arm, and before that for 18 years at the large Argentine oil and gas company Perez Companc, rising from junior reservoir engineer to asset manager. Daniel has been tasked with reviewing all operations within President's Argentinian business with a view to improving the returns from these operations and ensuring targets that are set are met with the appropriate accountability for results.
Jordan Coleman , our hard working COO for Latam will continue to work with Daniel during the transition. His future focus will centre on our Paraguay exploration project, overseeing the business in the United States as well as providing such continuing support for Daniel as may be necessary.
Peter Levine , Chairman, commented:
"President has many things to look forward to in 2022 from a very robust trading, shareholder and strategic relationship base. The production news today announced are welcome additions to Group cash flow
"The future for President must be driven by a dynamic, motivated and incentivised operations and management team able to capitalise on these attributes to expand the Group materially, particular in different geographies. Daniel's appointment is a part of this strategy and we welcome him to the Group
"I look forward to informing you of further developments over the coming months."
