Greymouth Petroleum Touts Significant Gas Find in Chile

WELLINGTON (Dow Jones), Apr. 6, 2010

Independent New Zealand explorer Greymouth Petroleum said Tuesday that its Chilean operating subsidiary, PetroMagallanes, has made a "very significant" gas discovery at its Clarencia 1A well in the Caupolican Block, located on Tierra del Fuego in Chile.

PetroMagallanes said in a statement that it plans an early declaration of commerciality, the installation of "skid mounted" facilities and then an extended period of well flow testing.

"PetroMagallanes exclusively has confidence this gas discovery...will lead to an early declaration of commercial exploitation under the terms of the contract with the government of Chile," the company said.

PetroMagallanes fully funded the well, which it holds 50/50 with Chilean national oil company Empresa Nacional del Petroleo, or ENAP.

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