Americas Petrogas Discovers Hydrocarbons at Argentinian Block
Americas Petrogas announced recent developments on the 253,000 acre (approximately 1,025 square kilometers) Vaca Mahuida block in Argentina. Americas Petrogas has a 25% interest in the block which is in close proximity to the Company's Medanito Sur project where the Company has made four (4) oil discoveries and started production, as previously announced.
Over the past four months, Americas Petrogas, along with its joint venture partners, has participated in the drilling of five exploration wells, the locations of which were selected by the technical teams of Americas Petrogas and its partners.
All five wells have encountered hydrocarbons in at least one of the Centenario, Loma Montosa, Sierras Blancas, Punta Rosada and Pre-Cuyo Formations. This has validated the Company's geological model through the confirmation of both hydrocarbon migration and trapping in the Vaca Mahuida block. Results to date for these wells are as follows:
- VM.x-2014 well - completed as a natural gas well; tested approximately 1.0 million cubic feet per day (MMcf/d) of dry gas from the Centenario formation.
- Los Fenicios - LFe.x-1 well - tested 80 barrels of crude oil per day and 1.5 MMcf/d of dry gas from the Centenario - with the Sierras Blancas to be further evaluated at a later date.
- Los Griegos - LG.x-1 well - tested 1.45 MMcf/d of dry gas from the Centenario; 2.2 MMcf/d of dry gas from the Loma Montosa; and 1.5 MMcf/d of dry gas from the Sierras Blancas.
There are two additional wells awaiting evaluation:
- Pampas - Pa.x-1 well - to be evaluated by testing after encountering hydrocarbon shows while drilling.
- Yaganes - YA.x-1 well - nearing total depth with numerous hydrocarbon shows to be evaluated.
The full impact of the program and the follow up drilling opportunities will be evaluated and assessed once all testing is completed. Americas Petrogas is optimistic about the possibility of a multi-well follow-up drilling program on certain of these areas and about the possibility of securing higher prices under "Gas Plus" and "Oil Plus" (government incentives) for much of the new hydrocarbons to be produced from the discoveries.
The 100% success, so far, on Vaca Mahuida complements Americas Petrogas' earlier finds and successes on Medanito Sur where light sweet crude oil was found in similar formations and which acted as the catalyst for the drilling locations on Vaca Mahuida. Americas Petrogas' technical team had contemplated the possible continuation of the Medanito Sur play concepts into Vaca Mahuida and this recent drilling success is starting to confirm it.
Speaking about these recent developments, Mr. Güimar Vaca Coca, Americas Petrogas Argentina S.A.'s Managing Director, said "These drilling results represent a significant expansion of Americas Petrogas' success in the northeast platform of the Neuquen Basin. These multiple pay zones indicate attractive commercial potential for both oil and gas accumulations."
Mr. Vaca Coca went on to say, "The experience of our technical team in the Neuquen Basin and in the region contributed to these successes and we congratulate all of our personnel for their efforts along with the efforts of our partners' qualified technical personnel."