London-listed President Energy has spudded the second of three wells in its exploration programme in Paraguay.
The company revealed on Thursday the Lapacho well had spudded, targeting a discrete, well-defined fault block trap within the greater prospect area.
President estimates the Lapacho well could contain gross mean unrisked prospective resources of 1 trillion cubic feet of gas and 30 million barrels of condensate, while it believes the wider Lapacho area could contain 5.2 Tcf of gas and 157 million barrels of condensate.
The company estimates the well, which spudded on Tuesday, will take about 70 days to reach target depth, adding seismic data indicated the presence of a 400-metre section predicted to contain thick reservoir Santa Rosa formation sands at a depth of 4300 metres immediately below the Devonian source rock.
President also announced on Thursday that a preliminary analysis of logs and rock samples from the its first well in the programme, Jacaranda, had been completed.
The evaluation showed what President described as “a significant gas and condensate volume” which it said was estimated to be in excess of 20 Tcf of gas in place in the Devonian shale associated formation.
President came to that conclusion on the basis of data from the Mancos formation in the US which it says the Devonian source rock formation encountered in Jacaranda is closely analogous to.
According to data from the US Energy Information Administration, the Mancos formation holds 100 billion – 140 billion cubic feet of gas equivalent per square kilometre in shale and shale associated formations.
"The preliminary results of the evaluation of the Jacaranda well are very encouraging and while the priority for President remains targeting the very significant conventional prospects in its operated areas, it is clear that significant resource potential has been identified in the Devonian formation, for which flow testing is required,” President chairman Peter Levine said.
“Whilst our current focus is on the underlying sandstone reservoirs in Lapacho, the latest analysis of Jacaranda shows much promise for the future.”
President also noted the Jacaranda well had not yet penetrated the sands beneath the Los Monos formation which it believes could be hydrocarbon bearing and would provide an additional, conventional target on re-entry of the well.