President Energy anticipates increase in oil reserves following Argentina drilling campaign

AIM-listed natural resources outfit President Energy expects to see an increase in oil reserves after successfully testing an Argentine well.

President revealed flow rates of over 200 barrels of oil per day at its recently completed PFO 1001 well on Rio Negro province's Puesto Flores/Estancia Vieja concession.

The upstream oil and gas company said it would now target deeper intervals in the well in order to "gain a greater understanding of reservoir capability".

President's main target, which is much higher up in the well, has been projected to contain 15 metres of net pay at an "excellent porosity" of 25%.

Elsewhere on the site, President's second well, PFE 1001, has been drilled to target depth on time and budget, with oil and gas shows already being uncovered in mud logs across all three targets.

President's chairman and chief executive Peter Levine, said: "We are energised by the progress we are making as we continue with the second new well in our drilling programme with our motivated, focused and impressive Argentine team."

As of 1215 GMT, President shares had shot up 7.45% to 10.10p.