TIDMPPC
RNS Number : 2869Y
President Energy PLC
12 May 2021
12 May 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Secondary recovery project
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets focused primarily in
South America, provides an operational update with regard to
certain activities in the Rio Negro Province, Argentina
Highlights
-- Positive results from the secondary recovery pilot project in the main Puesto Flores field
-- Potentially significant implications for arresting and
reversing declines in certain of President's mature structures in
Rio Negro
Secondary recovery pilot programme
On 26 August 2020, the Company announced that it was to commence
a pilot waterflooding project in the Puesto Flores field and that
it would take time to evaluate such work.
President is pleased to say that the pilot project is showing
concrete signs of success which if promulgated to other parts of
the mature Puesto Flores field would not only in the short to
medium term increase production and but would also extend out
decline curves, thereby prolonging field life and ultimately have a
beneficial effect on the extent of recoverable reserves.
Waterflooding is a recognised form of oil recovery wherein
energy to sweep or move either residual oil or greater oil from the
reservoir rock is supplied from the surface by way of water
injection with the induced pressure of additional water. Widely
used in Argentina, it has never been tried in the Puesto Flores
field.
Waterflooding if successful, enables greater levels of oil in
mature fields to be produced which otherwise would be left in the
ground. By so doing not only does it produce more of the 2P (proven
and probable) oil reserves but mitigates the inevitable effect of
natural decline in production from existing wells by softening the
decline curve.
The pilot project was initiated in one fault block within the
Puesto Flores field using well PFO-26 to inject produced water that
otherwise would have been disposed of in a dedicated disposal well.
The objective of the project was to identify whether there was any
pressure response from wells in the same structure.
President has now identified a potentially significant positive
incremental response from two wells. The first from PFO-14 lying
700 metres away from PFO-26 and the other from PFO-10 which only
386 metres away.
After having considered and discounted other potential reasons
for the production increases from these two wells, the Company
after careful analysis considers that they are a direct result of
the waterflooding. The results at this stage show an aggregate
increase from these two wells of approximately 15 m(3) /d of oil
(circa 95 bopd) representing a 50% increase in oil production from
PFO-14 and 25% from PFO-10.
Whilst taken in isolation, an amount of just less than 100 bopd
does not resonate loudly in the context of President's overall
field production, this is value added production at little or no
extra cost which could account in respect of these two wells alone
for an additional sales revenue in excess of US$1.5 million a year
at current prices with little incremental opex.
Much more significantly, the results to date suggest that a
wider long term application of waterflooding may be successful in
other areas within the Puesto Flores field and it is this that
potentially could have a material impact on incremental production,
the extension of decline curves, estimated ultimate recovery
factors, in due course reserves and importantly field life.
The pilot programme will continue and consideration will shortly
be given as to the possibilities and practicalities of rolling it
out on an extended basis with other old non-producing wells being
utilised as injectors.
Peter Levine, Chairman, commented
"The results of the pilot waterflood programme are
encouraging.
"With such evidence of success in one structure with two
producing wells, whist monitoring how the production curves now
progress, consideration is now being given to rolling out over time
a waterflooding scheme where sub-surface conditions are suitable
both within the Puesto Flores field and other of our fields in Rio
Negro.
"As in the pilot programme, this is not the equivalent of an
overnight sensation and is one that requires continued patience and
diligence to develop a serious and impactful field scheme.
Nevertheless, this should not detract from the potentially
significant implications from the clear results so far".
Glossary
Bopd means barrels of oil per day
Boepd means barrels of oil and gas equivalent
Mmsft/d means Million standard cubic feet of gas per day
M(3) /d means million of cubic metres of gas per day
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations
info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
Notes to Editors
President Energy is an oil and gas company listed on the AIM
market of the London Stock Exchange (PPC.L) primarily focused in
Argentina, with a diverse portfolio of operated onshore producing
and exploration assets.
The Company has operated interests in the Puesto Flores,
Estancia Vieja, Puesto Prado and Las Bases Concessions, and
Angostura exploration contract, all of which are situated in the
Rio Negro Province in the Neuquén Basin of Argentina and in the
Puesto Guardian Concession, in the Noroeste Basin in NW Argentina.
Alongside this, President Energy has cash generative production
assets in Louisiana, USA and further significant exploration and
development opportunities through its acreage in Paraguay and
Argentina.
The Group is also actively pursuing value accretive acquisitions
of high-quality production and development assets capable of
delivering positive cash flows and shareholder returns. With a
strong strategic and institutional base of support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, President Energy gives UK investors access to an
energy growth story combined with world class standards of
corporate governance, environmental and social responsibility.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLBLGDULBBDGBB
(END) Dow Jones Newswires
May 12, 2021 02:00 ET (06:00 GMT)
Molecular Energies (LSE:MEN)
Historical Stock Chart
From Apr 2024 to May 2024
Molecular Energies (LSE:MEN)
Historical Stock Chart
From May 2023 to May 2024