South America-focused explorer President Energy has completed the drilling of its “proof of concept” Jacaranda well in Paraguay.
The PE-PY-J x1 – the first of a three-well programme in the Pirity Basin – has encountered more than 800 metres of live Devonian source rock in oil and gas condensate window.
The Carboniferous sandstone reservoir above the Devonian did not contain hydrocarbons, which have migrated due to the lack of a seal at the reservoir location.
But Jacaranda confirmed the prolific Devonian petroleum system of south-east Bolivia and north-west Argentina extends into Paraguay, significantly de-risking the remaining two wells in the drilling campaign, which was the firm’s high-end expectation of the drill.
The company is now looking to move its drilling focus to the largest single target in the basin, the Lapacho prospect, south of Jacaranda.
“Jacaranda is an excellent result for President, being the first basin opening well in Paraguay’s recent history,” said Peter Levine, President Energy’s executive chairman.
“Despite not having found conventional pay, this discovery has favourably impacted the potential for success at the company’s Lapacho prospect, which will now be moved up in the drilling sequence.
“The establishment of a live oil generative source rock is the key success factor for the prospectivity of President’s concessions, and we very much look forward to continued drilling success at Lapacho and Tapir.”
The well was drilled ahead of schedule and under budget, and will now be suspended for future re-entry, the company added.