President Energy gave a mid-November update on the progress of the Lapacho well, Chaco Region, Paraguay.
The well has been drilled to 4,490m since setting casing at 4,125m. President has previously announced that a light oil/condensate discovery had been made higher up the well in the Icla Formation and that drilling would continue to penetrate the main Santa Rosa target. President has now drilled the upper section of the Santa Rosa Formation and considers it is drilling a series of gas or gas/condensate sands.
Whilst at this stage it is too soon to state a discovery has been made before a full evaluation is done, there is evidence which gives President encouragement in this regard including constant background gas ranging from 3% to over 12% in the circulated drilling mud to surface throughout the drilling of the hole, an operation which is currently continuing. Accordingly President will endeavour to drill to the base of the Santa Rosa Formation to a depth of 4,600m to fully evaluate the target section.
Due to the extended drilling period a further progress announcement will be made towards early December.
Dr. Richard Hubbard, PhD Geology Stanford University, with 35 years of experience in the oil and gas sector, as President’s Chief Operating Officer, who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.