Argentinean integrated energy company Capex SA has opted not to continue with a second exploratory period at Parva Negra Oeste area in Neuquén province following 5 years without the discovery of commercially exploitable hydrocarbons, the company said Nov. 22.
Return of the area to Neuquén state-owned Gas y Petróleo del Neuquén (GyP) comes following fulfillment of investment commitments made in 2019 to secure the contract for exploration and potential development and production.
Capex drilled two wells in the 143-sq km block as part of a minimum investment of $19 million to carry out both drillings and build infrastructure for completion. After failing to achieve positive results, Capex will abandon the drillings and return the area to GyP for re-bid.
This is the second time that Parva Negra Oeste has been returned to state control. Before Capex, in 2017, Retama Argentina, a subsidiary of Retamco Operating, forfeited the license for failing to meet assumed investment commitments.