South America-focused President Energy reported Wednesday that it has agreed to buy for $6.9 million the 50-percent stake in Argentina's Puesto Guardian concession that it does already own along with the operatorship of the field.
Puesto Guardian is a 230 square mile territory located in the Noroeste Basin in northwest Argentina. There are five fields within the concession, which produced 9,000 barrels of oil per day in the early 1980s. Gross production is currently 300 bopd and the concession currently borders the Matorras and Ocultar exploration blocks that are currently both 100-percent owned and operated by President.
The Puesto Guardian fields contain many shut-in wells. President said that a three-well fracking campaign of previously shut-in wells demonstrated proof of concept that many historically shut-in wells, properly worked over and hydraulically stimulated could generate an increase in oil production with good payback. The firm has recently carried out geological and geophysical work including reprocessing and re-mapping which has shown encouraging results for potential new reserve bookings.
This work includes the consideration of a deep gas Palaeozoic play in the Martinez del Tineo field at Puesto Guardian where gross best un-risked prospective resources have been independently estimated at 570 billion cubic feet and 14.5 million barrels of condensate. Any discovery of a live petroleum system in the Palaeozoic formation, currently being explored by President's first well in Paraguay, would have a favourable impact on the risking of the MDT play, the firm added.
Have a news tip? Share it with Rigzone!
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you