President Energy’s well in the Santa Rosa Formation has spudded.
The Lapacho x-1 well experienced “very encouraging” hydrocarbon shows encountered throughout the gross formation thickness with high background gas of 20% and trip gas of 48%.
It was drilled to a total depth of 4,543, with 418m of the 600m target interval drilled. The full logging program was restricted due to difficult downhole conditions.
The outcome is in line with pre-drill estimates under which the well was targeting a discrete fault block trap containing gross mean prospective resources of 1 Tcf of gas (166 mmboe) and 30mmbbls of condensate within a greater Lapacho area considered to potentially contain some 5 Tcf plus associated condensate.
Peter Levine, chairman, said: “We are very encouraged by the hydrocarbon shows in the Santa Rosa Formation and look forward to flow testing the well, and announcing results in the near future.
“Whilst it is too early to determine the composition of hydrocarbons in the Santa Rosa, both liquid and gas are extremely valuable commodities not only in Paraguay which imports all its own energy requirements but also in the neighbouring energy hungry countries of Brazil, Chile and Argentina.”
The rig is now progressing to open hole well testing operations and a multi-rate test is planned to start in the next few days.
The news follows the company’s recent discovery in its Paraguayan well.
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