President Energy upbeat on exploration well testing

President Energy updated the market on the testing of exploration well EVN-x1 near the main Estancia Vieja field in Argentina’s Rio Negro province on Monday, having announced the well’s logging on 27 October.

The AIM-traded firm said preliminary testing of the lower of the two identified pay intervals shown by logs was now complete, with oil and associated gas successfully and continuously free-flowed to surface without the need for swabbing or pumping.

It said that represented the first time any hydrocarbons had flowed from the previously-undrilled structure.

The results were in line with the company’s P50 success case expectations, with initial production of more than 200 barrels of oil per day expected, plus associated gas.

Due to the productive success of the interval, the upper gas prone interval would be tested and then produced at a later time, President confirmed.

The workover rig was now moving to the next location, with EVN-x1 to be placed into production in the next 14 days.

“[These are] encouraging results, and a successful end to our fourth quarter two-well drilling campaign,” said chairman Peter Levine.

“Whilst work continues in our fields, we are now getting down to plan for next year with drilling very much on the agenda during 2021.

“We expect concrete plans to be made available by the end of January.”

At 1201 GMT, shares in President Energy were down 1.53% at 1.6p.