President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides an update in relation to its workover programme at the Puesto Flores field in Rio Negro Province, Argentina.

Key points

• Three previously producing wells at the Puesto Flores field (President 90% - Ediphsa 10%) have now been successfully worked-over, repaired and put back in production
• Current Puesto Flores field production 2,100 bopd (June average to date over 1,800 bopd as wells come back on stream) with pressures stable
• This level of production represents an over 50% increase in the nine months since acquisition
• Work completed to date below budget
• Workover programme extended from seven to eight wells with two of the eight wells to be worked over in the Estancia Vieja Field

Work on the first three wells of the current workover campaign has been completed under budget. Work is continuing on the next well in the series and, in light of the success achieved, the programme has been enlarged by the addition of a further well.

The results of the workover programme to date have been positive. Puesto Flores oil field production is presently running at approximately 2,100 bopd, with the average for June so far being over 1,800 bopd (as wells come back on stream), with pressures on the three worked over wells relatively stable.

This level represents an increase of over 50% in the nine months since the acquisition of the Concession. The success achieved so far is demonstrated by the fact that one of the wells has seen production increases which will achieve payback on the investment in under 30 days, significantly ahead of expectations. In addition, the efficient management of operations should permit the completion of an additional eighth well, taking the program to seven production well workovers and one water injection conversion, at the same budget as originally planned for seven wells.

Of the four producers remaining to be worked on after the current injector well is completed, two are now planned as oil well workovers at the Estancia Vieja field. 

In the meantime, preparatory work is continuing for start of the extended gas well tests at the Estancia Vieja field now scheduled to commence before the end of June.

Peter Levine, Chairman of President, commented:
"We are greatly encouraged by the results so far and to exceed the 2,000 bopd at this stage is creditable. From only the first three wells, President is already surpassing our pre-commencement target for initial production from the entire workover programme.

"We have still a lot of work to do and whilst it would be wrong to hang out the flags just yet, the progress to date is commendable. It also underlines the significant potential yet to be realised in this concession which we are pleased to operate and have as our 10% partner, Ediphsa, the Rio Negro Province’s energy company."