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President Energy to reactivate Argentine field after encouraging tests
President Energy announced the results of recent reactivation testing of gas wells in Argentina on Monday, noting a live gas field with potentially commercial gas flows.
The AIM-traded company will reactivate its 90% owned Estancia Vieja field at the Puesto Flores/Estancia Vieja concession in Rio Negro Province after two wells at the field produced median rates of approximately 200 and 250 boepd during testing.
Successful pressure recovery tests indicated a potential for good production and the company has set late H2 of 2018 as the target for first gas production.
Paul Levine, chairman and chief executive of President Energy, said: "We are currently considering the optimum way to develop the field potential with the target of generating first gas production in the latter part of this year. We are excited by this additional opportunity that will further diversify the Company's portfolio of cash generative production assets."
The Argentina focused oil and gas company plans to conduct testing on three further wells later this year.
"The encouraging results of these tests demonstrate a produceable and viable gas field at Estancia Vieja to complement our successful oil business at the adjacent Puesto Flores field," said Levine.
The Puesto Flores field is home to 26 wells, of which 17 are currently producing, and is also 90%-owned and fully operated by President Energy.
As of 1605 GMT, President Energy's shares were up 5.62% at 11.75p.