Trefoil Reports Discovery of Argentine Oil Field

Trefoil Limited

Trefoil Limited on Monday confirmed the discovery of a new oil field in the Puesto Pozo Cercado License in Argentina's Mendoza state.

Based on the interpretation of new 3D seismic, in 2005 Trefoil identified six underground structures prone to be oil bearing in the Puesto Pozo Cercado license. The first of these plays was tested by means of the exploration well PPC-1002x. The well production peaked at 2,700 BOPD of light and sweet oil (34 °API) during the testing period.

Well PPC-1002x was drilled to a final depth of 3,710 mts (12,100 ft.). It intersected five different productive formations at depths ranging from 2,943 mts (9,650 ft.) to 3,298 mts (10,800 ft.), totaling a pay interval of 75.5 mts (248 ft.); currently the well is flowing just from the higher pressure intervals which aggregate to 41.5 mts (136 ft.) of the total pay, leaving several horizons untapped for future testing and production.

The steady flow condition of the well was set to 1,000 BOPD (2% water cut) through a ¼” choke and with a well head pressure of 700 PSI, this represents a 35% increase in the joint venture’s production. Production is being trucked 20 Km (12.5 miles) to the JV’s treatment plant.

As a consequence of this discovery the Company decided to modify its drilling program. Both drilling rigs and the completion rig will be deployed in the Puesto Cercado license. The Company already applied for the environmental permits to drill the first six of nineteen possible wells in this play.

CEO, Mr. Jose Astolfi, commented, "This discovery raises our expectations regarding the remaining exploratory acreage in the PPC concession; the production and reserves associated to the outcome of the first stage of our exploration program call for a revision of our development plan. For the time being the Company’s year end net production target remains at 5.800 BOPD, this figure could eventually be revised."