President Energy suspends operations at DP1002 S/T well

The company faced “significant” difficulties in drilling after a section of its equipment broke off in the well and was unable to be recovered within the time frame.

The group is considering an appropriate workover rig to fish the casing out of the well.

There have also been quality issues encountered in this well, posing enormous challenges.

Issues with the rig were followed by a fractured drill pipe and then two failed cement plugs through compressive strength problems.

The firm’s attempts at casing the well has “proved an issue too far at this present time”, the board said.

Chairman Peter Levine said: "The frustration is particularly acute as we believe this development well, successfully completed, will be an excellent producer with the oil still there and available to be extracted. As a first and natural step, this well will be the subject of a serious and detailed internal review as well as discussions with our service providers.”

Despite the temporary suspension, the firm said it will in no way impact on the reserves or prospectively of the target formation in the field. The Dos Puntitas Yacoraite formation continues to be a major contributor to the company’s existing production for the concession.

"In the meantime production in Argentina continues at the levels announced in our interim report with Louisiana production now in excess of 200 boepd".

The drill has now been given to the neighbouring company Petro AP to use on its Pizarro well. Meanwhile investigations are ongoing to see whether all the issues are to do with the single well.

The share price fell 31.74% to 7.85p at 1211 BST on Thursday.