Sipetrol Starts Production at PC2063 Well in San Jorge Basin

Chilean state oil company Enap's international subsidiary Sipetrol has begun production on the second well drilled in 2007 on its Pampa del Castillo-La Guitarra block in Argentina's San Jorge basin, Enap said in a statement.

The production of the PC 2063 well in the block's Pampa Norte sector began May 19, and first measurements indicate production output of 600b/d of crude, Enap said.

The figure is between triple and quadruple Enap's estimate for initial production of a well in the zone.

The results provide interesting possibilities for the area given that the PC 2065 well has investigated deeper reservoirs than those already drilled in the zone, the statement said.

Sipetrol also has begun production at its PC 2028 well, with output reaching 15,000m3/d gas and 370b/d oil.

The gas can be used for power generation for Sipetrol's operations. The company has the capacity to supply some 45% of its own energy needs.

The block currently produces 7,050b/d crude and roughly 35,000m3/d of water that is reinjected.

It has proved reserves of more than 22Mb. In the five years that it has been operated by Sipetrol, the reserve-replacement rate has averaged 98%, the statement said.

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