News listings

energy-pedia development and production

Argentina flagArgentina

South America / GoM >>> Argentina

Argentina: President Energy completes successful workovers at the Puesto Flores field


12 Jan 2018

Photo - see caption

Highlights

  • The third and fourth workover wells at the recently acquired Puesto Flores Field in Neuquén Basin, Argentina have been successfully completed ahead of time and under budget with an expected payback for the entire four well workover campaign of less than three months
  • New untested intervals perforated and on stream in each well with preliminary results substantially ahead of expectations
  • Gross Field production expected to reach approximately 1,700 bopd in February when the latest workovers stabilise, up significantly since the start of the workover campaign 
  • Cash flow and margins substantially ahead of pre-acquisition expectations
  • President's share of production for the month of January from Argentina is expected to generate cash sales proceeds of US$4.5 million
  • Expanded 2018 activity plan for President's Neuquén Basin assets:
    • Initial testing of the shut-in Estancia Vieja Field to commence during February
    • Further workovers at Puesto Flores scheduled for Q2 2018
    • New drilling campaign planned to commence in H2 2018 to initially comprise development/appraisal wells
  • 2018 capex fully funded from existing resources and cash flow

AIM-listed President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, has announced successful results from its third and fourth workover wells at the Puesto Flores field, Rio Negro Province, Argentina (President 90% and Operator: Ediphsa 10%). The previously shut-in wells PFO-23 and PFO-10 were completed ahead of time and under budget at a total cost of US$950k versus a budget of US$1.25 million. The payback for the entire four well workover campaign is estimated at less than three months.

Photo - see caption

In accordance with the work plan for PFO-23 and PFO-10, the wells were cleaned out and the untested up-hole intervals in each well totalling some 21.5 metres net were perforated. The results were substantially ahead of expectations with testing at various flow rates ongoing. The two wells are now on stream and producing from the new intervals and once stabilised in February are expected to increase gross field production to approx. 1,700 bopd.

As a result of the success achieved, further workovers are planned at the Puesto Flores field in Q2 2018 with the commencement of development/appraisal drilling scheduled to commence in H2 of this year.

President has also now set in motion the testing of wells in the currently shut-in but previously producing adjacent field of Estancia Vieja within the same Concession with preliminary results due at the end of February. A total of up to four oil wells will be pilot tested with a more ambitious future programme including workovers and reactivations due to commence in Q2 2018.  The Estancia Vieja field was previously a prolific producer of both oil and gas, at one stage producing over 18,000 boepd between 1992 and 1993, but was producing only 63 boepd prior to it being shut-in in 2011 by the previous operator.

All the costs of the said projected work at Puesto Flores and Estancia Vieja are fully funded and will be met out of the Group's existing resources and cash flow.

The Company is in a strong trading position. In relation to oil prices, President received US$60.80 per barrel for its December oil from the Puesto Flores Concession with oil produced in January currently expected to realise approximately US$64 per barrel. This increase of nearly 20% since President acquired the asset in September 2017 when the price was US$55, together with the increase in net production to President since the start of the workovers, is currently having a materially beneficial impact on cash flow and margins, which are substantially ahead of pre-acquisition expectations for this time.

Peter Levine, Chairman and CEO, commented:

'President is delivering positive results from its work at the Puesto Flores field which is a reflection of the Company's growing in-country operational expertise.

'Concentrating our capex as previously announced on our Neuquén Basin assets, we enter 2018 with a multi-faceted, fully funded work programme.

'With all our Concessions in Argentina and Louisiana making profitable contributions we continue to focus on growth in shareholder value both organically and through the right acquisitions whilst maintaining our core emphasis on positive cash and margins.'

Original article link

Source: President Energy





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Publicly Available Deals

See all deals...

Subscriber Only Deals

Current deals: 1654
Completed deals: 4766

Company Profiles

Current Company Profiles: 2544

Corporate Activity

Current Corporate Activity articles: 3002

Companies Looking

Current number of articles: 417

Company Sales

Current Company Sales articles:1207

Geostudies

Current Geostudies articles: 547

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Bayphase
Lynx Information Systems
Rose & Assocs 149
Government of South Australia
energy365
EP Consult Energies
OPC
SLR Consulting logo
Union Jack Oil 149
KL Publishing
RSK Logo 149
count geophysics
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com