Page 14 - LatAmOil Week 04 2022

LatAmOil NEWS IN BRIEF LatAmOil

During Q4, two recompletions (RCPs) (Q3- obtained from the second well drilled in the complete DP-2003. The drilling rig will then
2021: two) and 35 workovers (Q3-2021: 18) sequence including latterly obtained through move to drill the new well in the Puesto Guard-
were completed, with swabbing operations con- casing, have shown interesting possibilities ian field.
tinuing across onshore and West Coast assets. A including in the deeper interval drilled below The Company is cautiously optimistic that
total of seven RCPs and 96 workovers were com- the original target depth. Whilst it serves no the Puesto Guardian field well will be the fourth
pleted during 2021. 31 Tier 1 onshore wells are purpose to speculate at this stage as the Com- well sequence to this drilling campaign and
now fully automated resulting in increased cost pany only has electric and mud log analysis with not the third but in managing expectations it is
savings from reduced manual interventions and petrophysical review, the workover rig currently appropriate to repeat that it is down to the test-
workover preventions. finishing DP-2001 will be mobilised this coming ing. Patience is therefore required and the facts
Q4-2021 Financial Highlights: Average reali- week to DP-2003 to conduct flow tests. During will out in due course.
sation of $67.0 per barrel for Q4-2021 (Q3-2021: that time the drilling rig will be temporarily laid Paraguay: President is pleased to announce
$62.6 per barrel) yielding a full year 2021 average down in an adjacent location in the field. that its partners in the new exploration well to
of $60.3 per barrel (FY 2020: $37.4 per barrel). If those tests suggest a further well at the be drilled, OPIC Paraguay, the wholly owned
Low operating break-even, pre-hedging, main- DP-2003 location is appropriate then a fur- subsidiary of the Taiwanese state-owned energy
tained at $29.2 per barrel (unaudited) for the full ther well from that well pad will be drilled as company, CPC, have approved the budget and
year 2021 (2020: $24.0 per barrel), in line with DP-2002. The workover rig will be moved off work programme for 2022 as laid out by Presi-
guidance provided at the beginning of the year. for this purpose as it is not possible to drill from dent and accordingly initial cash calls have now
Although no SPT was payable in respect of the the same pad and have the well completed at the been made to initialise the project. President’s
Group’s onshore operations during the year, SPT same time due to area constraints. In such case Paraguayan subsidiary is the operator of the
of $5.1mn (unaudited) was incurred in respect after drilling the well DP-2002, the workover venture.
of the Group’s offshore operations for FY 2021, rig will come back on to site and complete the President Energy, January 25 2022
of which $3.6mn was paid during the year. Cash DP-2003 and test and complete DP-2002.
balance of $18.3mn (unaudited) as at December After that well, there is a further well to drill Maha’s Tie-4 well tests
31, 2021, versus $20.2mn (audited) as at Decem- at the Puesto Guardian Concession in the Puesto
ber 31, 2020, and $20.4mn (unaudited) as at Guardian field itself, 45 km away from the Dos 4,695 boepd through Tie
September 30, 2021. Continued strong operat- Puntitas wells which will in that case be the
ing cash generation during Q4-2021 was offset fourth well in the sequence. The well will be near permanent facilities
by the PS-4 acquisition payment (circa $3.1mn the former producing well PG-13, which was
was paid in Q4-2021), Taxes including Q3-SPT, originally drilled by the state company YPF 40 Maha Energy is pleased to announce that the
Q4-Petroleum Profits Taxes and Unemployment years ago. It produced successfully until it was recently completed Tie-4 well is now tied into
Levies (circa $1.8mn), net hedging expenses as suspended 10 years ago due to a difficult fish in the permanent production facilities and has
crude oil prices increased from when the Group’s the hole (failed packer), which could not at that been placed on a 24-hour test using an Electric
hedges were put in place (circa $1.0mn) and stage re retrieved. Whilst there is no question Submersible Pump (ESP). The results were 4,400
continuing capex investment in the business that the high production levels over the years bpd and 1,766 mcf per day (4,695 boepd) with
(circa $500,000). Net cash (cash minus $2.7mn have depleted the reservoir of oil and the pres- a stable tubing-head flowing pressure of 220
drawn working capital facility) of $15.6mn as at sure, there was clearly still oil in the structure psi. The annual average production guidance of
December 31, 2021 (unaudited), versus $17.5mn and that is the target as well as newfound pro- 4,000-5,000 boepd for 2022 remains.
as at December 31, 2020 (audited). duction with modern logging and completion Jonas Lindvall, CEO of Maha, commented:
Trinity Exploration & Production, January 25 techniques. Target initial production rate is 30 “Testing of the Tie-4 well through the perma-
2022 cubic metres per day. nent production facilities is now completed.
In the event that after consideration of the The well came on so strong we had to shut other
President Energy issues testing of DP-2003, it is deemed that there is no wells in to accommodate the test volumes and
benefit from drilling a well from the same pad – additional oil trucks had to be mobilised. We are
update on operations in that is, such that they will be draining the same very pleased with the outcome. Again, the results
part of the structure and effectively “thieving” demonstrate the top quality of the Tie field and
Salta and Paraguay from each other, then the drilling rig will move the prolific nature of the Agua Grande and Sergi
off that pad and workover rig will immediately reservoirs.”
AIM-listed President Energy, the energy com-
pany with a diverse portfolio of hydrocarbon
production and exploration assets focused
primarily in South America, has provided an
update on its operations in Salta and Paraguay.
Operational update: The new well DP-2001
at the Puesto Guardian, Salta, Argentina, has
now been successfully tested with oil to surface
from the two expected formation intervals that
are also flowing in other parts of the Dos Pun-
titas field. The well will be placed on stream in
approximately one week using the same jet
pump as the other wells. Steady state production
rates will be advised in due course.
Further analysis of all the DP-2003 logs now

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