Page 14 - LatAmOil Week 16 2021

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President Energy brings

LB-1001 well on line at Las
Bases field in Rio Negro

AIM-listed President Energy has provided an
operational update with regard to certain activi-
ties in the Rio Negro Province, Argentina.
Following the workover of well LB-1001
in the Las Bases field, this well has now been $49 in Salta. The realisable prices for export after condensate and 809mn cubic feet of gas.
placed on stream. Initial production results relative tax are estimated to be $55. Average pro- As a result of a series of optimisation activi-
demonstrate a better than expected level of gas duction for H1 2021 will be provided at the time ties being implemented in the field around the
production with no associated water and good of the publication of the half year results. current production, average net daily liquids
pressure. This gives President confidence that Paraguay: Final draft documentation is production in March 2021 increased to 230 bar-
levels in excess of the previously stated 61,000 nearing conclusion and President is working on rels per day, a 24% increase over production in
cubic metres per day of gas (2.1 mcf per day or logistics and availability of signing authorities. February 2021.
circa 350 boepd) can be achieved with careful Given the ongoing pandemic affecting Paraguay, The Company is pleased to confirm that
well management. whilst working towards the target signing date of the materials required for the infrastructure
Gas prices and Oil export: Gas prices in at or around the end of this month, it may that upgrades of 23 km of pipeline, announced on
Argentina are now showing marked signs of the finalisation of agreements extends until early February 24, 2021, are now being fabricated by
increase now that the summer months are com- May. Nevertheless, President remains confident the supplier in Buenos Aires following contract
ing to an end. In expectation of robust produc- that there will indeed be a successful conclusion. execution and the installation schedule remains
tion of gas from the company’s Rio Negro fields President is solely focussed on delivering in line with that announcement.
as a result of the current drilling campaign, a farm out package that provides appropriate Commercial Update: Domestic energy
President has within the last month effectively financial support for drilling the exploration well demand in Argentina has continued to improve
hedged part of its production to effect a baseline in the first half of 2022. President repeats once through 2021 to date and the Company has
of steady income with the Company having the again that under the contemplated arrangements recently sold a significant domestic cargo of
flexibility to sell the balance either at spot or at it will remain operator and looks forward to the 8,812 barrels of oil net to Echo, at the Punta
opportunistic rates should they arise. conclusion of these negotiations, which have Loyola terminal, with a price linked to the Brent
President agreed at the start of this month to been underway for over 18 months. benchmark subject to typical local discount. Fol-
sell a fixed volume of 100,000 cubic metres per Peter Levine, Chairman, commented: “So lowing this sale, net oil stock at the Punta Loyola
day for a 13-month period commencing from far the results of LB-1001 are both pleasing and terminal (excluding inventory in field tanks) is
April 1, 2021, to April 30, 2022, at a fixed flat price encouraging and we are moving on to the next currently 4,237 barrels.
equivalent to approximately $3 per mmBtu, tak- stage of managing the well with confidence. As Following the Company’s announcement of
ing into account all relevant factors. This period to gas prices and our export of oil in May, one March 24, 2021, relating to new gas sales con-
covers the present month as well as the whole of can only say every little helps. Finally, we turn tracts for 2021-2022, the Company has now
the southern hemisphere winter 2021 and sum- to focus on the logistics of the farm out and look agreed summer and winter pricing for its annual
mer 2022. By way of reminder the winter period forward to finalising the transaction in the com- industrial clients, with the contracted winter pre-
for the usually higher-level gas prices extends ing weeks.” mium providing substantially increased cash-
five months from May to September inclusive President Energy, April 21 2021 flow in the near term for future operations and
with the summer of usually lower prices extend- production enhancement work programmes.
ing seven months in every 12-month period Echo Energy announces For the committed production over the key
from October to April inclusive. southern winter period (May to September), the
Taking advantage of higher prices at the date operational and commercial Company will sell natural gas at an average price
hereof, President has now agreed to sell 35,000 of $3.52 per mmBtu, which compares to $1.35
cubic metres per day for a 12-month period update for Q1-2021 per mmBtu for industrial clients the previous
from the beginning of May at a fixed flat price of year.
$3.40 per mmBtu. Echo Energy, the Latin American focused Martin Hull, CEO of Echo Energy, com-
President has also received permission to upstream oil and gas company, has provided an mented: “Advancing into 2021, Echo has been
sell through export 5,000 cubic metres (31,500 operational and commercial update regarding its set on optimising its existing production portfo-
barrels), being part of its oil production in the Santa Cruz Sur assets, onshore Argentina, for the lio and low-risk development upside across the
second part of April. Whilst this should be quarterly period ended March 31, 2021. Santa Cruz Sur asset base. The benefits of these
considered more of an infrequent event – e.g., Operational Update: Daily operations in the earlier efforts are now being seen. Additionally,
in May we anticipate once again selling in the field at Santa Cruz Sur continue with the deliv- I am pleased to report that Echo continues to
domestic market – both the experience creating ery of produced gas to customers as expected benefit from increasingly strong local energy
a track record of exports and financial benefits and without interruption. Production over demand and pricing, which has led us to obtain-
however small, are all helpful. the period from January 1, 2021, to March 31, ing premium seasonal pricing to current prevail-
Current realised domestic oil prices are run- 2021, reached an aggregate of 152,673 boe net to ing spot market prices, and more than double the
ning at approximately $51.5 in Rio Negro and Echo, which included 17,814 barrels of oil and price of the previous winter period.

P14 www. NEWSBASE .com Week 16 22•April•2021