Exploration & Production | Deals - Licenses and Concessions
Americas Petrogas Granted Evaluation of Vaca Muerta Blocks
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Americas Petrogas has announced that the Neuquén province in Argentina has issued a decree which grants Americas Petrogas and its joint venture partners an evaluation period on the Los Toldos I, II, III and IV blocks.
The evaluation period spans four (4) years beginning May 2014 and ending May 2018. The main investments, which the Company and its joint venture partners have committed to, for the initial two and one-half years of the evaluation period, are:
- Connect the ALL.x-1 well on Los Toldos I to a nearby gas pipeline;
- Install artificial lift systems in the LTE.x-1 well and the ADA.x-1 well on Los Toldos II to study the effects of artificial lift on production rates and to continue with the long-term production testing;
- Drill two (2) wells in block I or II (1 horizontal, and 1 vertical or horizontal); and
- Acquire 200 square kilometers of 3D seismic in blocks III or IV, and drill one (1) vertical well.
Prior to the granting of this evaluation period, the Company had drilled a total of three wells on the Los Toldos Blocks - one of them on Los Toldos I (ALL.x-1) and two of them on Los Toldos II (LTE.x-1 and ADA.x-1). All of the wells were successful Vaca Muerta shale discoveries and all three wells have been completed and hydraulically stimulated in various intervals of the Vaca Muerta. The LTE.x-1 well and the ADA.x-1 well are currently on long-term production testing with intermittent pressure build-up periods.
Americas Petrogas is the operator of the Los Toldos Blocks, which measure approximately 163,800 acres or 663 square kilometers gross. The Company holds a 45% participating interest in the Los Toldos Blocks, with ExxonMobil holding a 45% participating interest and Gas y Petróleo del Neuquén maintaining a 10% participating interest.
Mr. Barclay Hambrook, President and CEO, stated: "This evaluation period provides us the needed time to evaluate the oil, gas and gas liquid resources on the Los Toldos Blocks and to assess the blocks for the future development planning stage. Given the resources determined by independent petroleum engineers Ryder Scott (Houston) on these blocks and given the increased industry activity on adjacent and nearby exploration blocks, we have greater confidence that our Los Toldos Blocks are very well positioned in the Neuquén Basin."
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