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President Energy brings three new Argentinian wells online; The business is profitable

By Joe Hoppe

The Energy PLC chairman said Thursday that it has brought three new wells online in Argentina and that its business remains operationally profitable.

The oil and gas company, which operates primarily in Argentina, said the three new wells in the Puesto Guardian concession in Salta province are each producing between 125 and 185 barrels of oil per day. The concession’s older wells are also undergoing intervention work to improve production.

Argentina remains profitable, generating good free cash flow. Domestic oil prices continue to rise, with prices in its central Neuquen Basin area currently hovering around $67 a barrel and gradually rising.

The president said he was materially insulated from high inflation in Argentina because it is a US dollar-based business and careful management of its Argentine peso balances is exercised.

The company also said a gas lift system was being installed and implemented to maintain and improve production at its Louisiana site, with the well expected to be fully operational again in August.

“Operations continue to progress in Salta and the price levels achieved when we export are particularly satisfactory,” said Chairman Peter Levine.

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Write to Joe Hoppe at [email protected]