4 March 2022
Phoenix Global Resources plc
("Phoenix" or the "Company")
Drilling Update
Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company, announces an update on drilling activity at various licences.
Mata Mora
The Company has commenced the drilling activity for Pad 2, which consists of three wells with 2,600 metre horizontal lateral lengths and 37 frac stages. The Company finished drilling three vertical sections, to depths of 2,314 metres, 2,280 metres and 2,316 metres and two horizontal branches navigating the Vaca Muerta formation, whilst the third lateral section is currently being drilled and will then commence completion activities. The Company is planning to commence the Pad 3 program by mid-March 2022.
The early production facilities are under construction, works are being carried out on the oil and gas treatment and measurement stations and flowline tie-ins to oil and gas evacuation pipelines are being installed. This will enable the Company to avoid flaring in-line with the Company's sustainability goals.
Corralera South
The Company has completed the drilling of a vertical exploration well to a depth of 3,639 metres and its horizontal branch with a 2,134 metre lateral length and 30 frac stages, navigating the Vaca Muerta formation. The well is currently under flow back testing and is producing high volumes of water with oil traces with a high presence of CO₂. Water and gas samples have been taken to run laboratory analysis to understand their origins.
Corralera North-East
The Company has finished the drilling of a vertical exploration well to a depth of 2,970 metres and its horizontal branch with a 2,000 metre lateral length and 29 frac stages, navigating the Vaca Muerta formation. The initial flow back testing has been completed, which produced high volumes of water and low volumes of oil with a high presence of CO₂. The well is currently shut in for well testing with pressure build up, isotope sampling and tracer analysis currently being carried out.
Rio Atuel
The Company has executed the drilling and completion activities of a conventional vertical exploration well. The well was drilled to a depth of 2,131 metres penetrating the Huitrin and Chachao formations. After stimulating the well, oil in the two formations has been tested. Initial flow rates are in-line with expectations with a low water cut. The well is currently in production and under initial evaluation, which is expected to complete by the end of March 2022.
Phoenix continues to meet the target dates in its challenging schedule, whilst maintaining a focus on operational excellence, cost management and quality of delivery.
It is too early to draw any final conclusions and a further update on activity and the results of the ongoing tests and evaluation will be provided at the appropriate time.
For further information, please contact:
| Phoenix Global Resources plc | Pablo Bizzotto, CEO Nigel Duxbury, CFO
| T: +54 11 5258 7500 T: +44 20 3912 2800
|
| Shore Capital Nominated Adviser and Joint Broker
| Toby Gibbs David Coaten | T: +44 20 7408 4090 |
|
Panmure Gordon Joint Broker |
John Prior Atholl Tweedie |
T: +44 20 7886 2500 |
Qualified Person Review
In accordance with AIM guidance for mining, oil and gas companies, Mr. Cristian Espina has reviewed the information contained in this announcement. Mr. Cristian Espina, Chief Operating Officer for the group, is a petroleum engineer with over 20 years of experience in the oil and gas industry and is a member of the Society of Petroleum Engineers.
About Phoenix
Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on both the London Stock Exchange (AIM: PGR) and the Buenos Aires Stock Exchange (BCBA: PGR) and offers its investors an opportunity to invest directly into Argentina's Vaca Muerta shale formation and other unconventional resources. The Company has over 0.9 million licenced working interest acres in Argentina (of which approximately 0.7 million are operated), 18.8 million boe of working interest 2P reserves and average working interest production of 4,549 boepd in 2020. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 0.6 million working interest acres with Vaca Muerta and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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