Argentina: Shale look due on Neuquen farmout

Apco Oil & Gas International Inc., Tulsa, Okla., has found oil and gas on the 100,000-acre Coiron Amargo block in Argentina’s east-central Neuquen basin and later will explore the Vaca Muerta shale on the block.

By OGJ editors
HOUSTON, Dec. 9
-- Apco Oil & Gas International Inc., Tulsa, Okla., has found oil and gas on the 100,000-acre Coiron Amargo block in Argentina’s east-central Neuquen basin and later will explore the Vaca Muerta shale on the block.

The first two wells, which have earned Apco a 22.5% interest in the block from Madalena Ventures Inc., Calgary, and Roch SA, Buenos Aires, are discoveries in the Sierras Blancas (Tordillo) formation. One flowed 100 b/d of oil with associated gas. The other tested at 660-1,620 b/d and 1.17-1.35 MMcfd and is on line at 233 b/d plus gas.

Apco exercised an option to drill two more wells by mid-2011 to hike its interest to 45%.

Geologic data indicate that conditions required to potentially produce from the Vaca Muerta shale may exist on the block, Apco said. Williams Cos., Tulsa, owns 69% of Apco.

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