Project Profile
Value: Undisclosed
Location: Southwest of Buenos Aires
Area: 100,000 acres
Exploration Start-up: 2016
The Coiron Amargo block covers an area of approximately 100,000 acres and is situated approximately 650 miles southwest of Buenos Aires and approximately 75 miles east of the Cortadera block. During the exploration phase, Madalena and partners pay 100% of the costs. If reserves are discovered in commercial quantities, production will be subject to a 12% royalty payable to the province of Neuquen. The provincial oil company, Gas y Petroleo, is responsible for its 10% share of the costs incurred in the development and production phase.
In July 2016 the block was divided into Coiron Amargo Southeast and Coiron Amargo Southwest.
Holders of interests in the Coiron Amargo Block in Argentina’s Nequen basin and a unit of Royal Dutch Shell PLC entered into a series of agreements that subdivided the southern part of the 100,000-acre tract and adjust holdings and roles. The block has conventional oil production from the Jurassic Sierras Blancas formation and unconventional potential in the Lower Cretaceous Vaca Muerta shale. It’s divided into a northern exploitation concession of 26,598 acres and a southern evaluation concession of 72,738 acres. The agreements will divide the southern concession into two evaluation lots: Coiron Amargo Southeast and Coiron Amargo Southwest.
Madalena and its partners are in the planning stages for the first Vaca Muerta horizontal multi-frac well on the block. A detailed third party review of geophysical and geological data on the block has been completed. The results of this study, combined with knowledge gained after a data exchange for several horizontal multi-frac wells directly offsetting Coiron Amargo, will be used to finalize the location and drilling plan. The Company anticipates commencing operations in July, 2016 with the possibility of commencing a second horizontal multi-frac well prior to the end of 2016.
Operators:
Pan American Energy (PAE): 55% interest
Madalena (subsidiary of Royal Dutch Shell plc): 35% interest
Gas y Petroleo: 10% interest