President Reports Oil, Gas Signs at Argentine Well
Argentina-focused President Energy reported on October 27 that its latest exploration well in the Rio Negro province had signs of oil and gas.
The EVN-x1 well was drilled to a target depth of 2,000 m and was cased on time and on budget.
"Both full suite electric logs and mud logs show clear, moveable live gas and oil pay with good pressure, porosity and permeability," President said, adding that the results so far supported its pre-drill projections. It estimates there is a net pay of 10 m of clear, live, moveable hydrocarbons in two clean sand intervals.
The well will be completed and tested before the end of the year by a workover rig. Prior to drilling, the company had projected the well could deliver 60,000 m3 of gas and 188 barrels/day of production.
President also reported on October 26 that its LB-1001 well at the Las Bases field in Argentina had test-flowed gas at a rate of 50,000-100,000 m3/day. LB-1001 will be brought into production by the end of November, coinciding with an extra 75,000 m3/day of output coming on stream at the Estancia Vieja field following well workovers.
President reported a pre-tax loss of $3.5mn in the six months ending June 30, versus a $249,000 profit a year earlier. Its revenues slumped 41% to $13.7mn, despite its daily production rising 14% to 2,747 barrels of oil equivalent/day. President blamed the weaker result on prices that saw the "most sudden peacetime fall in living memory."
"The concentration on our core businesses, margins and the strategic decision taken to pro-actively materially reduce debt in times of sustained lower prices have resulted in a sound financial and trading platform on which sustained growth can be developed," company chairman Peter Levine said. "In particular it would be wrong to overlook the organic potential of our producing and exploration portfolio."