South-America focused President Energy has spudded the first deep exploration well in Paraguayan Chaco licence in nearly 30 years.
The Jacaranda 1 will test the potential double play system (Cretaceous and Palaeozoic) in the north-west flank of the Pirity Concession, holding an estimated 624 million barrels of oil equivalent (boe).
The well is set to be drilled to the depth of 4200metres within 70 days.
The announcement comes shortly after President increased its stakes in the Paraguayan licence to 64% last week, following the acquisition of 5% shareholder LCH.
Also today the company announced the results of an independent audit over the Lapacho prospect, forming part of the Chaco region, where it identified a potential drilling location.
The prospect is estimated to hold unrisked prospective resources of 5.2 trillion cubic feet of gas and 157 million barrels of condensate, totalling more than one billion boe.
“The newly identified petroleum system and the size of the Lapacho prospect underline the potential significance of President’s interests in Paraguay,” said Peter Levine, President Energy’s executive chairman.
“It is now all about the present drilling programme which has commenced.”
