Antrim Discovers Oil at Las Violetas 105 Well in Argentina
Antrim Energy says the Las Violetas 105 well ("LV-105"), the latest well in Antrim's current drilling program in Argentina has resulted in a new oil discovery. The well was drilled to a target depth of 1,856 meters in the Springhill Formation, logged and the target formation perforated over a 16.5 meter interval (12.5 meter net). Initial flow rates of 750 barrels of oil per day ("bopd") of light crude with an API of 43 degrees and negligible water were recorded. The well is currently on production at a rate of 450 bopd at 110 psi with a 14 mm choke. The oil is being trucked approximately 25 km to the Rio Chico sales point. Recent prices for oil produced from the Tierra del Fuego area are approximately US$57 per barrel. Oil produced and sold in Tierra del Fuego is subject to a 12% royalty and no corporate income tax.
The Company anticipates that additional drilling locations will be constructed as soon as possible to delineate this oil discovery. The area around LV-105 was covered by the 3-D seismic program acquired in 2005. Antrim and partners have a rig on site to enable a rapid appraisal of the discovery.
The oil discovery LV-105 is the tenth of eleven wells drilled in Antrim's ongoing Tierra del Fuego program. To date, 5 wells have been completed and tested as liquid-rich gas wells; 3 wells have been cased and are awaiting stimulation; one well (LV-105) has been completed as an oil well and is on production; one well has just been logged and cased and is waiting on testing; and, one well has been plugged and abandoned.
Antrim has a 25.78% interest in three licenses in Tierra del Fuego. The Petroservico rig, used in the current drilling program, is under contract until August 31, 2006.
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