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Neuquen conventional oil discovery completed

Calgary independents Americas Petrogas Inc. and Gran Tierra Energy Inc. completed a new field oil and gas discovery at the first of three exploratory wells on the Rinconada Norte block in Argentina’s Neuquen basin.

The RN x-1004 well flowed a combined 944 b/d of oil, 43 b/d of water, and 472 Mcfd of gas from two intervals tested separately in the Precuyo formation. From the depths of the tested zones at 982-992 m and 1,022-32 m, the company estimates a 60-m oil column thickness. The oil is 29.6° gravity, sweet light crude similar to crude oil produced from the equivalent formation in Americas Petrogas’' Medanito Sur block.

The well has been completed, and the service rig will now move on to the next two wells, which have already been drilled, logged, and have production casing set. An Americas Petrogas subsidiary operates the block with 65% working interest, and a unit of Gran Tierra has 35%. Americas Petrogas anticipates building test production facilities in the fourth quarter of 2011.

The Rinconada Norte block covers 96 sq km immediately south of Americas Petrogas’ Medanito Sur block in La Pampa Province in the eastern Neuquen basin.


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