LONDON (Alliance News) - President Energy PLC Thursday said it has started drilling ahead of schedule at its Lapacho well and has completed the preliminary evaluation of samples from its Jacaranda well, both in Paraguay.
Indications at the Lapacho well, the second of three wells, show estimates of 1 trillion cubic feet of gas and 30 million barrels of condensate of unrisked resources, it said.
The greater Lapacho area is considered to contain unrisked resources of 5.2 trillion cubic feet of gas and 157 million barrels of condensate with mapping suggesting oil present to the north, it added.
The company said the Jacaranda well samples are estimated to hold 20 trillion to 28 trillion cubic feet of gas in shale and shale associated formations with a condensate ratio in excess of 15%. Jacaranda is yet to penetrate the sands beneath the Los Monos Formation, "which may be hydrocarbon bearing", said President.
"It is clear that significant resource potential has been identified in the Devonian Formation (Jacaranda well), for which flow testing is required. Whilst our current focus is on the underlying sandstone reservoirs in Lapacho, the latest analysis of Jacaranda shows much promise for the future," said Executive Chairman Peter Levine.
President's shares were up 5.3% to 20.00 pence per share Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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