President Energy will drill two new wells in Rio Negro, Paraguay, within the next 4 months. Preliminary discussions are taking place with service providers to take advantage of excess capacity from a lack of activity in Argentina. Permits are expected within the next 2 months.
The first well, Las Bases 1001 development, will target proven un-produced attic gas in the Las Bases structure with 6 bcf total recoverable reserves; target depth is 1,700 m and P50 rate is 100,000 cu m/d (605 boe/d) with high chance of success. Estimated cost is $1.9 million.
The second well, Estancia Vieja EVN-x1 exploration, will target an un-drilled independent structure for both gas and oil north of the producing Estancia Vieja field. Target depth is 2,000 m and P50 oil and gas rates are 40 cu m/d (252 bo/d) and 60,000 cu m/d (350 boe/d), respectively. Chance of exploration success is good and estimated cost is $2.5 million. If successful, the company said, the Estancia Vieja north will open with estimated 14 MMbbls oil in place and 26 bcf gas in place which will require up to a further 6 wells.
Once completed, the wells can be placed on stream without delay.
There are no 2P reserves booked for Estancia North. A Dec. 31, 2019 independent audit calculated 26.4 MMboe 2P reserves.
In addition, follow-up infill drilling and workovers will be conducted in Puesto Flores, but at a lower priority than the above two wells.