Argenta Begins Production Testing at Covunco Block

Argenta has started a long term production test in well OA x-1, Covunco block, Neuquen basin, Argentina. Early results indicate a reservoir with gas and light condensate with stabilized rates of 706.6 mscfpd at a pressure of 350 psi on an 8 mm choke and 16 bpd of condensate. The gas is flowing from perforations between 6,220 and 6,306 feet in the Tordillo Formation. Well OA x-1 was initially drilled by YPF in the 1980s and then stimulated by Alberta Energy in the 1990's, but was never put on production.

Testing activity will continue for several days to determine whether the Company should proceed with re-stimulating the reservoir with state of the art technology and to estimate the recoverable reserves through the interpretation of the newly acquired flow and pressure data.