Upstream oil and gas company President Energy announced an accelerated programme of workovers and drilling activity at the Puesto Flores/Estancia Vieja Concession in Río Negro Province, Argentina on Monday.
The AIM-traded firm said the major workover programme would follow the success of the four-well workover programme in the fourth quarter of 2017 - the results of which were said to have been "substantially ahead" of management's expectations, increasing both production from new perforated zones and reserves.
President said it would be conducting a six-eight well workover programme at Puesto Flores from next month.
The workovers would include both necessary remedial work to three wells, and the workover of other wells which were either non or low producers.
In all cases other than two, new potentially producible hydrocarbon zones would be perforated.
President said the workovers would be complemented by the workover of a water injector well.
Total costs for the workovers were estimated to be $3m, with an expected mid-case payback of under one year.
Te workovers were projected to increase production from the Puesto Flores field whilst mitigating natural decline rates.
President said it also began the planning of an accelerated three development well drilling campaign, also at the Puesto Flores Field, targeting proved undeveloped reserves in existing producing reservoirs.
The board said the project would be an enhancement to the single well previously planned for 2018.
It explained that the application process for surface location permits had been initiated with the relevant authorities.
Each well would be drilled to approximately 2,750 metres at a cost of around $3m per well.
Negotiations were said to be taking place with the company's partner in the field, Edipsha, and with contractors.
Work was planned to begin in the third quarter, and be completed during that period or shortly afterwards.
Each successful well was estimated to have a mid-case payback of under less than months.
Following on from the short term gas well tests at Estancia Vieja field, longer term tests were now being planned for three to four gas wells, and those were projected to begin in June.
The results of those tests would assist President in determining the best way to monetise its gas as well and the extent of its gas reserves in that field, the board said.
"Time flies and with six months already gone since we acquired the concession, so must we," said chairman and CEO Peter Levine.
"Therefore, encouraged by the success so far, and taking advantage of current oil prices
and cash flow, we are moving forward with an advanced programme, substantially ahead both of our original plans and our commitments to the Rio Negro Province.
"In the meantime, work progresses on our listing in Argentina where we are projecting to join the market sometime in late July 2018."