Production from Argentina's Vaca Muerta shale play is expected to double by 2018 according to a new development study by Wood Mackenzie.
Wood Mac’s study highlights that oil and gas output from the play will be moderate in 2016, with a year on year production increase of ten percent, although this increase will see a marked ramp-up by 2020. The average horizontal IP30 rate in the play’s Loma Campana block is currently around 646 barrels of oil equivalent per day, up from 443 boepd in 2014.
Horacio Cuenca, research director for Latin America at Wood Mackenzie, commented in a company statement:
"YPF and its JV partners continue to decrease drilling and completion costs aiming to move into ramp-up and development phases."
Wood Mackenzie believes around 200 wells will be brought online in the region in 2015, with fewer in 2016 as vertical wells are phased down. In order to fully develop Vaca Muerta, the study suggests that more joint venture deals will be necessary as YPF will need outside assistance to develop the 6.3 million acres it holds.
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