Current net production attributable to the producing Bella Vista Oeste concession is estimated at 1,900 barrels of oil and natural gas liquids per day from approximately 50 active producing wells. Vintage believes the properties contain significant workover, drilling and waterflood potential which it plans to pursue along with the implementation of operational efficiencies.
"These properties provide us with an initial entrance into the north flank of the San Jorge Basin, complementing our existing acreage position in excess of over one million acres in the southern portion of the basin. The acquired properties are a logical extension to our existing property base and contain similar geology and well established, predictable production decline curves. These properties also provide Vintage with the type of operational and work program opportunities in which we have excelled historically," said Charles Stephenson, CEO. "In anticipation of this transaction, we added oil price hedges covering approximately 1,400 barrels of oil per day through the first quarter of 2007 at monthly NYMEX reference prices ranging from $41.46 to $31.31 per barrel to assist in protecting acquisition returns."
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