President Energy advances Rio Negro, Argentina operations

President Energy continues to advance its Rio Negro workover and drilling operations in Estancia Vieja and Puesto Flores fields, Argentina.

Well EVx-1 underwent a $250,000 workover and was tested on various choke sizes from 4-12 mm for 12 hr each with similar pressure build up tests at 12 hr intervals. The well had good pressure throughout with production rates from 25,000-150,000 cu m/d of gas with a small amount of condensate. Data are being analyzed to determine the producible volume of the reservoir and its characteristics. President expects to put the well on stream in October with about 80,000 cu m/d of gas (+/-470 boe/d) initial production following successful flow tests.

Well PFO-33 has been turned into a water disposal well replacing previous disposal well PFO-17, which ceased to be operable 3 months ago. PFO-33 is now capable of disposing of 400 cu m/d of water, saving on third party costs incurred since the previous well stopped injection. The workover was completed ahead of schedule and under budget.

After completing the PFO-33 workover, the rig moved to oil producer PFE-1001 to replace a failed electric submersible pump. The well should be back online in 7-10 days. The rig will then move to the next sequence of wells which will include workover of EV-20.

Drilling operations are scheduled to begin by end-September. The first well, Las Bases 1001, will target attic gas in the Las Bases structure. Expected P50 rate is 100,000 cu m/d (588 boe/d) of gas and 6 bcf of recoverable gas with a target depth of 1,700 m.

Estimated costs to completion are $1.9 million with drilling time, excluding completion and tie-in, of 21 days. Production should begin in November.

President Energy is operator (90%) of Puesto Flores and Estancia Vieja concessions with partner EDHIPSA (10%).