Mendoza: Consortium Plans US$170mn for Puesto Pozo Cercado

Argentine oil consortium El Trebol-Chanares Herrado plans to direct at least US$170mn by 2008 to the Puesto Pozo Cercado area in Mendoza province's city Tupungato, the provincial government said in a statement.

The consortium reactivated works on its only well in the area two weeks ago and already has invested US$65mn to develop the area, according to the statement, which cites a meeting with company executives. The US$65mn is not part of the planned US$170mn investment.

The 3,700m-deep well is producing 1,000 barrels of crude a day (b/d), but the company aims to begin producing up to 2,700b/d. The new investment planned for the area includes drilling as many as 60 wells.

The discovery "could be qualified as one of the most important crude discoveries made in Mendoza in the past 25 years," the statement said.

The Trebol-Chanares consortium is composed of Norwegian oil company Petrolera El Trebol and local oil company Chanares Herrado.

El Trebol also is working city Malargüe's Puesto Rojas zone in Mendoza and likely will begin drilling the area before the end of the year, according to the statement.

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Company: El Trebol-Chanares Herrado more info
 - Mendoza: Consortium Plans US$170mn for Puesto Pozo Cercado (Aug 30)