President Energy has now entered into a contract for a workover rig in relation to the forthcoming multi-well workover campaign, the plans for which were announced at the time of the recent placing in November 2016.
The rig is to be provided by Quintana Well Pro S.A. and will be based at and dedicated to the Company's Puesto Guardian Concession (the "Concession") for a period of 12 months, thereby giving the Company significant flexibility in its rolling workover programme.
It is expected that the rig will be mobilised to the Concession in the next four weeks after thorough acceptance testing.
First operations will commence in February with workovers of two producing wells which are presently under maintenance, together with the creation of a new water injector in a currently abandoned well.
Workovers on old shut-in wells are due to commence during March 2017. The workovers include a frac programme on at least three of the old shut-in wells.
The Company reaffirms its target of 1,200 bopd production from Argentina by end summer 2017, as originally announced at the time of the November placing.