President Energy reports positive progress at Salta, Puesto Flores

The AIM-traded firm said well DP-2001 was flowing the first commercial new well oil on the concession for the first time in 12 years.

“It is early days, and the company is in the process of testing to assess optimum steady state levels and performance,” the board said in its statement.

“The positive news is that the well is successfully cleaning up and producing 90% oil with little water.”

President said further announcements would be made after the well was stabilised.

The second well in the programme - DP-2003 - was being tested, with results expected by the end of the week.

At the secondary recovery project on the Puesto Flores concession in Rio Negro, meanwhile, President said one of the important objectives was to mitigate natural production declines in mature fields, as well as sweep as much oil as possible to enhance total recovery factors in a profitable way.

The company previously announced a successful pilot waterflood programme in a small part of the field, and on Monday it said it had now received a detailed plan from independent experts, which was “optimistic” that a successful secondary recovery campaign could be achieved.

It would comprise using both existing wells, and drilling new injector wells.

“This is not an overnight process, nor will there be instantaneous results as with all waterflooding,” the board explained.

“The company will now proceed to obtain all necessary consents and make preparations to roll out the project on a step by step basis in the Puesto Flores field.”

President said the field work and injection, subject to consents, was projected to start in the middle of the year, with results of the first section of injections likely to be seen in 12 months.

“It is necessary to review progress and pressure response at each stage.”

At 1218 GMT, shares in President Energy were up 2.64% at 1.75p.