President Energy makes progress in Argentina, Louisiana

The AIM-traded firm said the logs showed the well was “virtually analogous” to the well DP-1001, drilled in 2010, in the same field which had an initial production rate of 40 cubic metres per day, and was still in continuous production.

Following the “encouraging results”, casing running was taking place and the new well would be tested in January.

“A full suite of electric logs, including pressure testing, has been acquired over three separate runs which, on a preliminary basis, indicate that this new oil well DP-2001 is virtually analogous to the well DP-1001 drilled at the same field in 2010,” the board explained in its statement.

“The electric logs on DP2001 show a total net oil pay of some 10 metres over two intervals.

“Pressure tests show an average depletion of 10% from original pressure with good mobility shown in each of the spot tests which are all positive signs taking into account Dos Puntitas is a producing field.”

President Energy said it was “encouraging” that the older well, DP-1001, drilled at the time by the then-operator Puesto Guardian at a cost of $6m, was still in continuous production, adding that after 11 years the well was still producing nine cubic metres per day.

“The new well DP-2001 which has been drilled by President faster and at nearly half the cost, is now being cased and thereafter cemented prior to completion and testing with a workover rig.

“This rig will be mobilised to start work in the field in January so that, all being well, it can complete and test both this well and the next well in the sequence, DP-2003.

“It is testing that will provide the acid test as to the producibility of any well.”

After casing of the well, the rig would move to the location for the second well, DP-2003, where spudding was expected to take place in about 10 days.

In Louisiana, meanwhile, President said the workover of the Triche well was ongoing, with the well cleaned up and the lower open perforations - considered to be generating a higher water cut - successfully cemented.

“The top of the previously-perforated interval has now been re-perforated with a previously un-addressed interval higher up the hole saved for later as there is good pressure seen from the perforations already made.

“The higher interval has been made ready to be completed rigless at a later date.”

President said that “promising progress” had been made to-date, adding that while running “a day or two” behind schedule, the well should be back on production within the first half of December.

At 1142 GMT, shares in President Energy were down 4.68% at 2.24p.