MercoPress. South Atlantic News Agency

British company spuds exploratory well in Paraguay's Chaco

Jacarandá expects drilling to target a depth of 4.200 meters

London AIM listed President Energy PLC, has spudded what it calls the first deep exploration well in the Paraguayan part of the Chaco basin in almost 30 years.

 The Jacaranda 1 well will test a potential double-play system in Cretaceous and Paleozoic formations on the northwest flank of the Pirity Concession abutting the Argentine border in northwestern Paraguay.

President expects drilling to target depth of 4,200 m TVD to take 70 days.

The company farmed in to the Pirity and adjacent Demattei concessions in October 2012. The concessions are in the Pirity sub-basin, an extension of the Olmedo sub-basin of Argentina

From Pirity Hidrocarburos, a subsidiary of PetroVictory, President acquired an 11.8% working interest in the Pirity Concession for 10 million and can earn up to a 59% interest. It acquired a 3% working interest in the Demattei Concession for 2 million from Crescent Global Oil Paraguay and can earn up to 60%.

The concessions cover a total of 16,000 sq km.

President has an option to farm in for up to an 80% participating interest in the Hernandarias Block, which covers 18,507 sq km immediately north of its other Paraguayan concessions. With the Hernandarias farm-in, which awaits governmental approvals, President would operate acreage covering almost all of what it described as the “prospective Pirity Rift basin.”

The Jacaranda 1 is the first of three exploration wells the company expects to drill this year. Schlumberger is providing project management and other services for the drilling program, which will use a rig owned by Queiroz Galvao Oleo e Gas SA of Brazil.