Repsol Confirms Oil Find in Argentina's Neuquen Basin

BUENOS AIRES (Dow Jones), Dec. 1, 2009

Repsol's Argentine unit YPF on Tuesday confirmed newspaper reports that it has found oil in the Neuquen Basin, but said it is still too early to talk about the size of the reservoir.

A well at the site has produced a total of about 11,000 cubic meters of crude over the last six months, a spokesman for YPF said.

That is well above the average lifetime production of between 60,000 and 70,000 cubic meters for wells in that region, the spokesman said.

A further 12 wells will be drilled on the field in coming months, he said.

The company was in the process of preparing the reports to file with securities regulators when Neuquen Gov. Jorge Sapag on Monday revealed the discovery, leading to reports in local newspapers on Tuesday.

The company denied a report in the Clarin newspaper that the find could result in output of up to 90 million barrels a year. YPF doesn't yet have an estimate for the total size of the field, the spokesman said.

YPF owns more than 54% of La Caverna well, which also has BP PLC, Bridas and Wintershall Energy as partners.  

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