Americas Petrogas Inc. announced that it continues to make significant progress on its exploration and development activities in Argentina. The Company has embarked on an aggressive drilling program in both its eastern and western properties, concentrating on the established producing pre-Cuyo and Tordillo formations in Medanito Sur and Rinconada Norte as well as the prospective Vaca Muerta Shale oil and gas and other tight reservoirs in its western properties -- Los Toldos I, Los Toldos II, Huacalera, Loma Ranqueles, Totoral, Yerba Buena and Bajada Colorada.
The current drilling campaign on Medanito Sur targets conventional hydrocarbons in the Eastern part of the Neuquen Basin in Argentina. Since obtaining the exploitation permit in March 2012, the Company has drilled numerous new wells in addition to the wells drilled earlier in 2012.
The drilling on Medanito Sur is ongoing and there have been notable successes which are currently producing or will be put on production in the near term. In summary, since the beginning of 2012 until the current date, the Company has drilled nine wells.
Three wells have been drilled, tested, completed and are currently on production as follows:
The Company has drilled four additional wells as follows:
In addition, the exploration wells, PRN x-2 and EJS.x-1, drilled in early January, were not commercial; however these wells have provided valuable geological information for future drilling activities and they may be used in future as potential injectors for a waterflood.
The Company continues drilling additional wells on Medanito Sur and plans more drilling on Rinconada Norte later in 2012.
The objective for 2012-2013 is a total of up to 30 appraisal, development and exploration wells for Medanito Sur and Rinconada Norte combined. The total volume of production is partially restrained by storage and neighboring facilities. To manage the future additional production, the Company is expanding its own facilities to be able to handle up to approximately 6,300 bopd of oil by the fourth quarter of 2012.
Unconventional Vaca Muerta Shale Wells
The Huacalera well, operated by Apache Energy, is undergoing long-term production testing.
From the Los Toldos Este well, operated by the Company in conjunction with our joint venture partner, ExxonMobil, vertical and sidewall cores as well as cuttings and well logs continue to be analysed in labs in the United States. The results will determine priority zones for testing the Vaca Muerta Shale and other potential reservoirs.
In the Totoral block, the first Exploratory well is planned to drill in June 2012. By now, the drill site and access roads are complete and all permits are in order. It is expected that within the next two weeks, the rig will start moving into the location to drill the La Hoya x-1 well, targeting the Vaca Muerta shale in Totoral.
Mr. Barclay Hambrook, President & CEO, stated, "We are pleased that the execution of our conventional drilling program has resulted in early success. This has required us to fast-track the expansion of our company-owned oil facilities. As well, we are preparing to drill additional unconventional wells with Vaca Muerta shale as the primary target. These wells include those to be drilled on our 90%-owned Totoral block as well as those with our joint venture partner, ExxonMobil, on our Los Toldos blocks.
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