Source: President Petroleum
President Petroleum (AIM: PPC) is moving forward with the drilling schedule for the Kafoury 3 well in East Lake Verret, Louisiana, USA.
The drilling rig contracted to drill the Company's Kafoury 3 exploration well in Louisiana, will arrive on location by October 22, 2010, and drilling of the well is now expected to be under way by October 24, 2010, approximately two weeks ahead of schedule.
Drilling to target depth of 14,600 feet is expected to take around 40 days. The Company has an option to retain the rig on location to drill a second well, which would most likely be a shallow producing well to obtain additional early cash-flow.
The independently assessed gross 3P reserves attributable to the prospect are 110 bcf of gas and 1.2 mmbbls of oil totalling 19.6 million barrels of oil equivalent ("mmboe"), of which around 85% is located in the deeper sands. President Petroleum's net 3P reserves based on a 55% Net Revenue Interest are 10.8 mmboe.
If the Kafoury 3 well is successful, up to three deep wells will be drilled in 2011 in addition to a shallow well. Two further deep wells may be required in 2012 dependent on success.
"A successful Kafoury 3 well opens up the potential to transform the Company's reserve and production base in Louisiana, with rapid monetisation through our existing infrastructure and sales contracts,” Stephen Gutteridge, Chairman of President Petroleum, said.
"The proposed US$50 million placing will ensure that we are fully funded to exploit this potential, and in the New Year we will look to build on any success in Louisiana with the drilling of the substantial 40 mmbbl Northumberland 2 prospect in South Australia which we expect to commence in the first quarter of 2011."