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YPF Accelerating Vaca Muerta Drilling Over +50% in 2018

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   |    Tuesday,March 06,2018

[Summary: In its recent presentation, YPF announced that it is ramping up Vaca Muerta drilling activity over 50% in 2018.

Lower Well Costs Fueling Activity

The company is planning to drill 100 wells across 12 areas of the play (compared to 64 wells in 2017). This planned increase in activity comes after drilling costs fell nearly 40% since 2016 to ~$1,400 per lateral foot at year-end 2017.

Completion Design Adjustments

YPF adjusted its completion design in the Loma Campana area of the Vaca Muerta in 2017, including:

  • Increasing average frac stages to 27 (up +59% from 17 in Q3 2016)
  • Increasing average lateral length to 7,217 feet (up +47% from 4,921' in Q3 2016)

Additionally, YPF noted that it is launching five pilot projects in the play this year:

  • Bajo del Toro
  • Cerro Las Minas
  • Salinas del Huitrin
  • Cerro Arena
  • Las Tacanas

In 2017, they had 2 rigs at work derisking the play and a third rig was added to the Chevron/YPF JV program. The two companies also announced plans to accelerate 2018 JV activity back in October 2017, adding $500 million to their planned 2018 spending.

YPF did not mention how many rigs would be operating in 2018.

In YPF's latest conference call, Chairman Miguel Angel Gutierrez commented: "I will also like to highlight that our aggressive decision to invest in shale pilot to accelerate our non-conventional de-risking, we then pilot to re-execute it in 2018 as discussed for more than $600 million, in addition of the development of tight gas in new areas like Río Neuquén."

In its call, YPF also noted that it expects shale production to increase +35% YOY from 2017(a production number was not disclosed).

YPF is partnered with numerous companies for Vaca Muerta development including:

 


Search Data From YPF S.A. Latest Presentations



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