Chevron Corp. has been granted a concession for the unconventional exploitation of hydrocarbons (CENCH) by the government of Neuquén province Argentina that could open new development in the northern area of the liquids-rich Vaca Muerta shale formation.
The El Trapial Este block covers an area of 282.8 sq km and is derived from the Chevron-operated El Trapial-Curamched area exploitation concession. According to the fluid distribution window, in El Trapial Este, the Vaca Muerta formation is a producer, from west to east, of gas condensate, light oil, and black oil, the government said in an Apr. 9 statement.
“This concession is an important milestone for Chevron Argentina since it will allow unconventional development in the eastern zone of El Trapial,” said Eric Dunning, managing director for Chevron Latin America.
In the 3-year pilot stage, Chevron is expected to invest $65.7 million to drill, complete, and start up five horizontal wells of 2,500-3,000 m and 38-46 fracture stages each. Another $13 million investment is expected for construction of support infrastructure.
The pilot plan wells are in addition to 7 existing area wells.