President Energy begins drilling campaign in Puesto Guardian, Argentina

President Energy signed a drilling services contract for three wells to be drilled at the Puesto Guardian concession in Salta Province, Argentina, before yearend. The contract also includes an option to retain the rig into 2022 for an additional two wells.

The first three wells will be drilled in Dos Puntitas field and the two contingent wells for 2022 in Pozo Escondido field. Each is estimated to cost $3.5 million and have a drilling time of 45 days with a mean success case initial projected oil production of 40 cu m/d (250 b/d).

Site clearance for the first well has begun with the rig due to mobilize during in early October. It is expected to spud by mid-October, with drilling of all three wells expected to be completed by yearend. The final well is expected to be on stream in January 2022.

In Louisiana, the Triche and Simmons 2 wells remain offline as they have for the last 3 months awaiting workover of the Triche well to reinstate production. The operation of Triche is required for Simmons 2 to operate, as the well uses Triche produced gas for gas lift.

Triche has not performed optimally in 2021 due to the progressive breakdown of the downhole gravel pack in the well. A The delay in fixing the problem has been exacerbated by Hurricane Ida. A rig is now available, but the company is awaiting barge availability. Workover is planned for end October and the wells are expected to produce 300 boe/d net to President.

President Energy holds a 100% operated interest in the Puesto Guardian concession.