Argentina

Crown Point Ventures Ltd., Vancouver, BC, found gas in two zones in the Canadon Seco formation in El Valle oil and gas field in the Argentina’s southern San Jorge basin and plans to drill five to eight more wells in early 2010 subject to regulatory approval.

By OGJ editors
HOUSTON, Nov. 6
– Crown Point Ventures Ltd., Vancouver, BC, found gas in two zones in the Canadon Seco formation in El Valle oil and gas field in the Argentina’s southern San Jorge basin and plans to drill five to eight more wells in early 2010 subject to regulatory approval.

Last of a three-well program, the EVx-20 well flowed 1 MMcfd of dry gas on a 14-mm choke from a 4-m sandstone and 5 MMcfd on a 19-mm choke after frac from a 4.5-m sandstone. Depth is about 1,000 m.

A gas pipeline crosses the block, and any commercial sales from the field are eligible for the Gas Plus program introduced in 2008 to provide better prices for the sale of new gas in Argentina. Produced gas has been used to power field equipment thus far.

With completion of the three wells and the 90-sq-km 3D seismic program, Crown Point has earned a 70% interest in the production from the earning wells prior to payout, and 50% thereafter. All future work including drilling, workovers, and recompletions will be carried out with a 50% working interest.

El Valle field covers 15,814 acres. Thirty producing wells were drilled starting in the early 1960s. The wells averaged 250,000 bbl of oil from the Caleta Olivia formation and 125,000 bbl from Canadon Seco, both of Cretaceous age.

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