Canada firm adjusts to Argentine export tax

An Argentine government hike in the export tax on crude and products appears to reduce cash flow 8%, and Petrolifera Petroleum Ltd., Calgary, is determining whether it will need to defer or eliminate projects accordingly in 2008.

Nov 20th, 2007

By OGJ editors
HOUSTON, Nov. 20 -- An Argentine government hike in the export tax on crude and products appears to reduce cash flow 8%, and Petrolifera Petroleum Ltd., Calgary, is determining whether it will need to defer or eliminate projects accordingly in 2008.

Meanwhile, the company reported oil and gas discoveries in several new pay zones on its Puesto Morales block in Argentina's Neuquen basin.

The 1050 well is a Jurassic Sierras Blancas gas-condensate discovery southwest of the block's northern lobe. It flowed at 2.4 MMcfd and 14 b/d on an 8-mm choke increasing to 6.5 MMcfd and 37 b/d on a 16-mm choke. CAOF is 7.5 MMcfd, with some reservoir constraints indicated.

The well is to be tied into production facilities within weeks.

The 1006 well flowed light oil at the rate of 350 b/d from zone LM9 in the Cretaceous Loma Montosa formation after frac. This zone had only been completed in structurally higher positions for gas to date. Follow-up drilling and testing is under way nearby.

Also, the 1028 well flowed light oil at the rate of 410 b/d from a new upper zone in the Cretaceous Centenario formation on the block's eastern edge. This was undertaken after the initial productive zone began to produce at high water cuts.

The company is running four drilling and four workover rigs on the concession.

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