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President Energy reports

successful test of well
LB-1 at the Las Bases Field

AIM-listed President Energy has announced
testing success at the old shut-in well, LB-1, Las
Bases field, Rio Negro, Argentina.
Key points: Workover and testing of the shal-
low Centenario interval in the old shut-in well,
LB-1, was a follow-on from the successful newly
drilled well LB-1001; Gas freely and continu-
ously flowed to surface in commercial quantities
during test at choke sizes ranging from 4 mm to
16 mm; Potential to materially increase produc-
tion by performing artificial stimulation.
This represents the first time any hydrocar-
bons have been tested and flowed by President
from this previously undrained Centenario
interval within its concession areas. The com- the testing, pressure built up to original pressure Las Bases and perhaps others of our Rio Negro
mercial production of the shallow Centenario within one hour suggesting inter alia good res- fields. Accordingly, this result following on from
opens up the potential to cost effectively drill ervoir production qualities. the two successful drilled wells in the last two
this prevalent shallow interval elsewhere in the It is considered that, on production, this months, demonstrates the continued potential
Company’s licences. Centenario formation will interval without further stimulation will initially for organic growth in our onshore short cycle,
make a positive addition to President’s end of flow, steady state, at approximately 21,000 cubic high return conventional oil and gas assets as
year reserves (no reserves of any category cur- metres per day (120 boepd). It is expected that well as the maturing capability of our teams in
rently booked for the formation). The well will this would increase materially with a hydraulic handling multiple work streams simultaneously.
be placed on production before year-end. or further acid artificial stimulation due to what Step by step may seem a trite expression but it
Las Bases LB-1: On October 26, the Com- could be a tighter form of reservoir rock in this underlines the clear and obvious positive rate of
pany announced that, as a result of the success interval. In this regard, the rock properties and climb that President is achieving in its business.”
of the newly drilled LB-1001 at the Las Bases dynamic reservoir data will now be analysed and President Energy, November 26 2020
field, Rio Negro Province, there was potential reviewed during the initial stages of production.
for a workover, perforation and testing of the A positive and important feature is the fact that Maha Energy reaches TD on
shut-in well LB-1 to initiate, in the words of the on the logs there does not seem to be an identifi-
announcement, “new previously untapped gas able oil/water contact nearby. Tie-2 development well
production.” Work has now commenced on subsurface
LB-1 was drilled originally by Chevron and mapping of this interval across President’s AIM-listed Maha Energy reports that the Tie-2
was a prolific producer of gas from deeper sec- licence acreage. Whilst it is premature to say development well (7-TIE-2D-BA), on the Tie
tions that subsequently watered out. It has been more, it is already clear that this result is a poten- light oil field, onshore Brazil, reached a TD of
shut-in for several years; however, the results of tial play opener at least in the Las Bases field and 2,195 metres on November 21. Both produc-
LB-1001 highlighted the potential of gas produc- in any event it will make a positive addition to tive target formations were intersected. Electric
tion from a shallower, younger Cretaceous sand President’s end of year reserves. logging has been completed and the well is now
interval known as the Centenario at a depth of The cost of the workover is estimated on being prepared for production.
approximately 950 metres. budget at a modest $350,000 and the well will be Electric logging and drilling results con-
No commercial production by President or placed on production before year-end. firmed the productive Agua Grande (AG) and
its predecessors in title has ever been seriously Peter Levine, Chairman, commented: “This Sergi formations are likely to be oil-bearing.
attempted from this interval which had in effect is an encouraging result. Whilst in the context Indications are that both productive formations
been bypassed and ignored. Accordingly, no of our growing Group production, the expected are above the Oil Water Contact and Tie-2 marks
reserves have ever been booked by President in pre-year end initial production can be said to a new structural high in the Tie field with the top
respect of this interval despite the fact the Cen- be more incremental than material, the testing of its AG reservoir being 2 metres higher than
tenario Formation is prevalent at these shallow success has a potential impact of somewhat the TIE-1 well (Attic well).
depths in the Las Bases, Puesto Prado and Estan- greater significance. Taking into account the The AG yielded 23 metres of gross reservoir
cia Vieja fields. now proven produceability of the reservoir, the sand with an interpreted net productive thick-
It is this sand body of approximately 7 metres shallow depth thereby meaning modest costs ness of 13 metres. The Sergi yielded 17 metres of
(23 feet) which has now been tested. After per- for drilling new wells, the potential to materially gross reservoir sand with a net productive thick-
foration and an acid treatment to the interval the upscale production levels by artificial stimula- ness of 7 metres.
well flowed freely and continuously to surface tion and in particular the prevalence of this Cen- Operations are now underway to complete
through choke sizes varying from 4 mm to 16 tenario interval over areas in our Concessions, the AG and Sergi formations and place 7-TIE-
mm with little or no water. On termination of it is a potentially new play opener in at least 2D-BA on production.

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