StockMarketWire.com - Argentina-focused oil company President Energy said it had made positive progress on a work-over of existing wells at its Rio Negro operations designed to increase their production.

The company also said a rig for a new drilling programme was now expected to start mobilising during the course of this week for drilling operations to commence on schedule before the end of September.

With regards to the work-overs, President Energy said operational testing of the the EVx-1 well had concluded, with flow rates and pressure building up supporting initial testing results.

The well tested on various choke sizes from 4mm to 12mm for 12 hours each with similar pressure build up tests at 12 hour intervals.

Throughout, it maintained good pressure with production rates ranging from 25,000 cubic metres per day up to 150,000 cubic metres of gas with a small amount of condensate.

President Energy said that for good reservoir management, subject to definitive data results, the well was expected to be put on stream from October initially producing around 80,000 cubic metres per day of gas.

A second well, PFO-33, had been turned into a water disposal well replacing a previous disposal well PFO-17, which ceased to be operable some three months ago.

The work-over rig then moved on to the oil producer PFE-1001 to replace an electric submersible pump, which had failed around two months ago and then put the well back on production.

That operation was now nearly completed and had gone according to plan, the company said, with the well expected to be back online in the next seven-to-10 days.

As for the upcoming drilling programme, the first well would still be the Las Bases 1001 development well targeting attic gas in the Las Bases structure.

Estimated costs to completion were $1.9m with drilling time, excluding completion and tie-in, of around 21 days.

'As the well is in close proximity to existing infrastructure, on a success case the well should be in production at some stage during November,' President Energy said.


At 9:09am: [LON:PPC] President Energy Plc share price was 0p at 1.63p



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