Argenta Discovers Oil in First Exploration Well in Loma El Divisa

Argenta Oil & Gas Inc. reported initial results of its first exploration well on its 100% owned Loma El Divisadero property in the Neuquen Basin, Argentina.

The LEDO x-2 well was drilled to a total depth of 5,294 feet and 7 inch casing was run and cemented at 4,694 feet. The well tested 19 degrees API gravity oil from the Chorreado Member (3,451 feet) before any stimulation. The Chorreado Member (Huitrin Formation) appears in this well with 197 feet of gross thickness in three different packages of fine to very fine sandstone, log porosities average 18%, with resistivities suggesting high oil saturation. The Company is currently evaluating the size of the hydrocarbon pool by reviewing the recently shot 3D seismic and examining a number of options to improve production rates, including a sand frac. It is common local practice by offset operators to frac this type of formation in order to boost production rates.

Victor Linari, Argenta's Chief Geologist and Geophysicist stated, "The new velocity logs taken in LEDO x-2 have led to further seismic interpretation, which suggests that the hydrocarbon accumulation in Chorreado Member in LEDO x-2 goes beyond the previously interpreted structural play and be part of a larger stratigraphic play. This is also supported by an old well reported by Repsol YPF in LEDx-3, located outside of the originally mapped prospect."

Claudio Larotonda, Argenta's President and CEO, further stated, "We are in discussions with engineering consultants to assess the application of drilling and completion technologies typically used in this type of reservoir to boost production rates and to plan a short-term development of the discovery. Meanwhile, Argenta continues with the completion of the other three exploration wells that were cased, which is taking longer than expected mainly due to the number of potential pay zones and the complexity of the reservoirs under testing."