President Energy (PPC ) announced that it has spud its first oil well at Argentina’s Puesto Guardian site and that drilling is expected to take 30 days at a cost of around US$3.5 million.

The energy company also said it expects to complete a farm-out in Paraguay in November.

The first in the sequence of new oil wells at the Dos Puntitas field - well DP-2001 - was spud after having been delayed due to logistical issues on the 1,950 km journey to the well site.

The Company has noted that drilling is expected to take 30 days at a cost of approximately US$3.5 million and mid-case targeted oil production on success is estimated at 40m3/d.
Meanwhile, the Company told investors that it has also begun a programme of workovers of two gas wells in Rio Negro Province in Argentina which it expects to complete in November.

The first well, ALH-2 in the Angostura Concession, is an older gas well which is intended to be perforated, stimulated and placed back on production. A second well, LB-1002, which was drilled this year, has been producing from the deepest section but has experienced decline. 

The workover will address the main target reservoir which is higher up the well bore. The cost of the workovers is around US$0.50m in aggregate and will be completed during this month. 

President added that the workover of the Triche well has now commenced and is projected to continue for three weeks to plug back, perforate and produce from a higher section in the well.

In the event of success, it is projected that both the Triche and Simmons wells will be back on sustained production at or around the end of this month, the Company told its shareholders. 

The cost of the workover to President Energy is expected to be approximately US$0.50m.

The Company said it sees no obstacle in the completion of a farm-out in Paraguay in November.  In regard to delays, the Group added that this is solely process driven and that the delay is not envisaged to affect the target to drill the first exploration well during H1 2022.

Follow News & Updates from President Energy here: