President Energy has made it first oil discovery in the Paraguayuan Chaco at its Lapacho well.
The company, which has a 65% interest in the asset, said tests will now be carried out to confirm the discovery of the conventional light oil found in the Pirity concession.
Two oil bearing pay zones were discovered in the Devonian Icla formation, which had not been the intended target of the well.
Casing is now being set before work begins to test the original target at the Devonian Santa Rosa formation.
Chairman Peter Levine said: “This discovery represents a significant milestone for both President Energy and for the country of Paraguay.
“President has demonstrated beyond doubt that movable conventional oil does exist in the Paraguayan Chaco.
“Whilst we are most satisfied with this discovery, President is now focused on drilling down to the original target which still lies in front of us”.
Production flow testing will now be conducted at the end of November, and it is expected the hycrocarbon flow rates from the Icla pay zones will be commercial on a stand-alone basis.
In addition to its discovery at the Lapacho well, at the Jacaranda Well a large discovery of crude oil has been made.
The plan is to proceed after Lapacho to deepen the well at Jacaranda.
