President Energy has encountered hydrocarbon shows at the Lapacho x-1 well in the Santa Rosa Formation in Paraguay.
The well had encouraging hydrocarbon levels throughout the gross formation thickness with high background gas of about 20% and trip gas of up to 48%.
It was drilled to a total depth of 4,543m with 418m of the 600m target interval.
The company said the full logging programme was limited because of the complex downhole conditions.
The rig is now moving to open hole well testing operations with a multi-rate test planned to start shortly.
After completion of the Santa Rosa test, the separate, shallow discovery in the upper Icla formation will be tested.
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By GlobalDataPresident Energy chairman Peter Levine 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."
President Energy’s 2014 drilling campaign has drilled two wells that have demonstrated the presence of a new Paleozoic hydrocarbon province in the Pirity Basin of the Paraguayan Chaco.
The company operates the total prospective area featuring 34,000km² spread across three concessions that include Pirity, Demattei and Hernandarias.
