President Energy drills first of three wells at Puesto Flores

Upstream oil and gas company President Energy updated the market on its current drilling programme at the Puesto Flores/Estancia Vieja Concession in Río Negro Province, Argentina on Monday, where it owns 90% and is the operator, with EDHIPSA holding 10%.

The AIM-traded firm said the PFO 1001 development well at the Puesto Flores field, being the first of a three well sequence, had now been successfully drilled, cased, cemented and logged on time and on budget, and was now awaiting completion with a workover rig.

It said the results obtained to date were at the “upper end” of expectations.

The well was drilled to a total vertical depth of 2,359 metres, with oil shows in at least three different formations, cuttings demonstrating bright yellow fluorescence under ultraviolet light, and live oil coming to surface over the shakers.

Commendable peak gas readings while drilling reached up to nearly one million ppm, with the range of C1 to C5 gas present, President reported.

As well as the mud logs, a full suite of electronic logs were successfully obtained showing hydrocarbon presence in the primary Punta Rosada formation, as well as in the deeper Pre Cuyo and shallower Lotena formations.

According to the logs, net pay was above 23m with “good to excellent” porosity ranging from more than 18% to some 25% - the latter being in the primary target zone, with original pressure and good permeability.

A completion rig would be mobilised for early November to test and complete the well where upon it would be tied in as a producer.

At that stage, President said a further announcement on flow rates would be made.

After a detailed inspection and rig repairs, the drilling rig was now moving on to the next well, PFE 1001, which was expected to spud shortly.

“Whilst the acid test is that of flow rates which we anticipate for November, the delivery of a successfully drilled well and the results so far obtained are all very encouraging,” said President Energy chairman and chief executive officer Peter Levine.

“When we commenced this three well programme, we stated that we were targeting an initial 600bopd contribution in aggregate from those three wells.

“Whilst we still need to complete this well successfully and drill and complete the next two, based on the evidence to date, we now view the achievement of this target with increasing confidence.”