|Working Interest||90% (10% EDHIPSA)|
|End 2028 (renewable)|
|Current 1P Reserves||0.6 MMboe|
|Current 2P Reserves||1.0 MMboe|
Las Bases, some 15km to the north of and interconnected to Puesto Prado covers 153 km², is a gas field comprising of 6 wells, 2 of which are producing gas, with a compression plant originally built by Chevron Argentina. The plant has recently been partly reactivated and is handling gas from the company’s Angostura and Estancia Vieja fields.
In July 2020, President announced a multi-well drilling and workover programme to take place in Rio Negro, Argentina. Las Bases LB-1001 development well was spudded at the end of September 2020.
The LB-1001 development well was drilled to the target depth of 1,700 metres. A full suite of open hole electronic logging was performed and the well was then successfully cased and cemented. Costs for the well drilled, cased, completed and tested are expected to be within the US$1.9m budget.
The electronic logs indicated a total of 54 metres of net gas pay spread of 6 formations which are in line with pre-drill expectations and likewise in line with the offset former producing well of LB-x1. The main formations of interest showed generally good permeability and porosity with ranges from 15%-20%. The results so far therefore supported the pre-drill probable (P50) expectations both as to initial gas production (100,000 m3/d being 588 boepd) and targeted reserves of 6 Bcf. On 7th December 2020, it was announced that the recently drilled LB-1001 (gas) well has been placed on production, with aggregate production from this well is currently ahead of expectation.
On 26 October the Company announced that, as a result of the success of the newly drilled LB-1001 at the Las Bases field, Rio Negro Province, there was potential for a workover, perforation and testing of the shut-in well LB-1 to initiate, in the words of the announcement “new previously untapped gas production”.
LB-1 was drilled originally by Chevron and was a prolific producer of gas from deeper sections which subsequently watered out. It has been shut-in for several years, however, the results of LB-1001 highlighted the potential of gas production from a shallower, younger Cretaceous sand interval known as the Centenario at a depth of approximately 950 metres.
As of 20 January 2021, LB-1 is free flowing 33,000 m3/d (1.15 MMsft/d or 194 boepd) without having been hydraulicly stimulated. Success case initial production rates per well are 40,000 m3/d (1.4 MMsft/d or 235 boepd).
Additionally, in early December 2020, a new compressor infrastructure at the Las Bases field has been commissioned and is in operation. The compressor enables more gas to be delivered from the Company’s Estancia Vieja gas wells.
As at 20 January 2021, President has a firm programme to drill four new slim hole gas wells in the Las Bases and Estancia Vieja Concessions in Rio Negro Province commencing during March. The wells are projected to be completed and on production in time for the commencement of the winter gas prices that start in May. Spot gas sale prices then are projected to rise to in excess of US$3 MMBtu compared to the present spot price of around US$2.3 MMBtu.
Three of these wells will target the Centenario formation in the Las Bases Concession and are expected to cost circa $1.3 million each with a drilling time of approximately 14 days per well. This price includes a mini hydraulic stimulation subject to results of logging.
Gas Pipelines of the Concessions
Las Bases benefits from its own 38km 8″ diameter steel gas pipeline running from the Concession to own tie-in to the regional gas transport pipeline allowing gas to be transported and sold to market. President’s Estancia Vieja field is already connected into this pipeline as Puesto Prado has the benefit of its own gas pipeline running from Estancia Vieja through Puesto Prado to link in with the Las Bases pipeline. A new 6″ diameter steel pipe has been installed between Puesto Prado and Las Bases in February 2020, replacing the previous 3″ flexible pipe and increasing the volume that can be transported. There is also an oil pipeline running between from Estancia Vieja to Puesto Prado.
The plant has a pipeline connection for gas with Estancia Vieja