Chevron San Jorge makes oil discovery in Argentina

Chevron San Jorge SA, a wholly owned subsidiary of Chevron Corp., announced Thursday an oil discovery on its R�Negro Norte block in the Argentine province of R�Negro. El Solitario Sur x-1, drilled to 8,980 ft TD about 6 miles east of Chevron's Loma Negra oil fields complex, found multiple productive sandstone reservoirs in two formations.


BUENOS AIRES�Chevron San Jorge SA, a wholly owned subsidiary of Chevron Corp., announced Thursday an oil discovery on its R�Negro Norte block in the Argentine province of R�Negro. El Solitario Sur x-1, drilled to 8,980 ft TD about 6 miles east of Chevron's Loma Negra oil fields complex, found multiple productive sandstone reservoirs in two formations.

Oil-bearing intervals in the Lower Jurassic Pre-Cuyo were found at 8,638-95 ft. On test, this interval flowed 220 b/d of 18� gravity crude oil. A second series of oil-bearing intervals was found in the Middle Jurassic Punta Rosada at 7,682-7,705 ft and 7,729-67 ft. On test, these zones flowed 283 b/d of 28.5� gravity crude.

This new-field discovery marks the ninth find on R�Negro Norte Block since Loma Negra field was discovered in early 1997.

�This discovery supports Chevron San Jorge�s efforts to enhance the production of the Argentine oil sector and extends the production potential of the Loma Negra area,� said Leonardo Legarreta, Chevron San Jorge�s exploration manager. He says several additional prospects remain to be drilled in the Loma Negra fields complex�three of them this year and others in 2001.

�We expect to begin immediate production from the new discovery through the use of the early production facilities at the site and by using the treatment facilities at the Loma Negra field,� Legarreta said. Current total production from the Loma Negra complex is 18,900 b/d of oil.

Chevron San Jorge is one of the top producers in Argentina with gross operated daily production of about 78,000 b/d of oil and 40 MMcfd of gas. Chevron San Jorge is operator for the Loma Negra consortium, and holds a 37.5% working interest. Partners are Repsol YPF SA (35%), International Finance Corp. (15%), and Metro Holding (12.5%).

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