President Energy provides update on drilling at Puesto Flores field, Argentina

LEEDS -- President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, has provided an update on its current drilling program at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina (President 90% and operator - EDHIPSA 10%).

The PFO 1001 development well at Puesto Flores field, being the first of a three-well sequence, has now been successfully drilled, cased, cemented and logged on time and on budget and is now awaiting completion with a workover rig. The results obtained to date are at the upper end of expectations.

The well was drilled to a TVD of 2,359 m, with oil shows in at least three different formations, cuttings demonstrating bright yellow flourecence under UV light and live oil coming to surface over the shakers. Commendable peak gas readings while drilling reached up to nearly 1 million ppm, with the range of C1 to C5 gas present.

As well as the mud logs, a full suite of electronic logs were successfully obtained showing hydrocarbon presence in the primary Punta Rosada formation as well as in the deeper Pre Cuyo and shallower Lotena formations. According to the logs net pay is above 23 m, with good to excellent porosity ranging from over 18% to some 25%, the latter importantly being in the primary target zone, with original pressure and good permeability.

A completion rig will be mobilised for early November to test and complete the well where upon it will be tied in as a producer. At that stage a further announcement on flow rates will be made.

After a detailed inspection and rig repairs, the drilling rig is now moving on to the next well, PFE 1001, which is expected to spud shortly.