President Energy completes Argentinian workovers ahead of target
AIM-listed oil and gas group President Energy wrapped up its third and fourth workover wells at the recently acquired Puesto Flores Field in Argentina, completing the project on time and under budget.
The previously shut-in wells, PFO-23 and PFO-10, cost a total of $950,000 to complete, versus a budget of $1.25m, with President anticipating that it would take no longer than three months for the firm to fully pay back costs from the four well workover campaign.
President cleaned out the two wells before perforating untested up-hole intervals in each well.
Results from the testing were said to be "substantially ahead of expectations", with President's share of production throughout January expected to generate $4.5m from its Argentinean operations.
Both wells have since come on stream and begun producing from the new intervals and once stabilised in February, had been tapped to increase gross field production in the Rio Negro Province to approximately 1,700 barrels of oil equivalent per day.
Further workovers had been planned across Puesto Flores.
Peter Levine, chairman and chief executive, said, "President is delivering positive results from its work at the Puesto Flores field which is a reflection of the Company's growing in-country operational expertise."
"With all our Concessions in Argentina and Louisiana making profitable contributions we continue to focus on growth in shareholder value both organically and through the right acquisitions whilst maintaining our core emphasis on positive cash and margins," he added.
As of 0920 GMT, shares had gained 5.81% to 11.38p.