President Energy is advancing drilling and workover plans in Rio Negro Province, Argentina. Workovers of two wells, EV-20 and EV-x1, are expected to start by end-August, both at Estancia Vieja field. The wells are not currently producing, and workovers are targeting total initial production of 3.5 MMscfd and 50 bo/d. Cost for both workovers is estimated at $750,000.
Drilling of Las Bases LB-1001 development well is scheduled to begin mid- to end-September, with drilling of the second well, EVN-x1, projected to start 25 days later after inter-well site movements. Total expected initial production is 5.6 MMscfd and 188 bo/d with chance of success estimated at 75% for both wells. Cost for both wells, estimated on a completed basis including infrastructure, is $4.4 million.
EVN-x1 is targeting a new undrained structure within the larger Estancia Vieja field which could contain 5-14 million bbl of oil in place and 11-26 bcf of gas in place. A successful well could lead to six additional wells, five targeting gas and one targeting oil.
One development and one exploration well are planned in Rio Negro in first-half 2021 in a recently identified structure in the southern part of the Puesto Flores/Estancia Vieja concession. Vinderman ex-VI-x1 will target an undrilled structure which could contain 4-12 million bbl of oil in place with initial production expected at 300 boe/d.
Work on compressors and infrastructure previously scheduled for June has been reengineered to be carried out in parallel with drilling to facilitate differences in pressures and volume.
Independent audited reserves for President Energy in Argentina is 15 MMboe proven (1P) and 25.9 MMboe proven plus probable (2P).
