Four Submit Offers to Explore Ayala VI

Four companies have submitted offers to jointly explore the Governador Ayala VI area with La Pampa province oil company Pampetrol, according to a statement from the La Pampa provincial government in Argentina.

The block is in the Neuquén basin and covers 239km2.

The transitory business union (UTE) formed by Argentine oil companies Petrosiel and Energial submitted an offer.

Argentina's Petroquimica Comodoro Rivadavia (PCR) and Canada's Crown Point (TSX-V: CWV) each presented offers that would cover total initial investment costs on the block.

Argentine oil and gas company Raiser submitted an offer that would partially cover the initial investment necessary, according to the statement.

No offers were received for the 293km2 Ayala 1 block, although two companies had purchased data packages on the block.

Pampetrol and La Pampa province will now evaluate the offers.

The winning bidder will work in cooperation with Pampetrol to conduct 3D seismic evaluations and drill two exploratory wells.

Pampetrol was created in September 2006 by La Pampa province, which holds a 60% stake in the firm. Municipalities in the province hold 20% and the remaining 20% is publicly traded.

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