Project Profile
Value: US$20 million
Location: Northeastern shelf area of the Neuquén Basin, province of Rio Negro, west central Argentina
Area: 1025 km2 (232,800 acres)
Start-up Year: -
The Vaca Mahuida Block is located along the northeastern shelf area of the Neuquén Basin situated in west central Argentina in the province of Rio Negro. The Block is 1,025 km2 (253,000 acres) in size and lies immediately south of the Rinconada Block that is currently being developed by PDP. The Block is currently covered by 540 km2 of 3d seismic shot by Chevron in the late 1990\'s and 2d seismic of multiple vintages. To date (excluding the joint venture wells) 12 exploration wells have been drilled on the Block, one of which tested 10MMcf/d gas from a thin interval in the Jurassic Loma Montosa Formation (LM). Additionally there have been multiple shows in the SB as well as in the deeper Triassic section and the shallower Cretaceous Centenario Formation. Brownstone completed in 2011 the work necessary to earn a 25% interest in the Vaca Mahuida Block. Its interest will be formalised upon the granting by the petroleum agency of the exploitation license over the Block.
The estimated actual cost of this program is approximately US$20 million. The state\'s value in accordance with the work units bid, is valued at US$36 million. If minimum work is not fulfilled, then cash payments are made at this level. By the end of 2008, the joint venture completed 3 wells and 1,150 km2 3D seismic. The wells were mixed with one dry well, one waiting on cement and one with oil (but not tied in). The joint venture drilled another five wells on the Vaca Mahuida block in 2011. All five wells encountered hydrocarbons in one or more geological formations. Of those five wells, three tested from 1.0 million cubic feet to 2.2 million cubic feet per day of dry natural gas. The remaining two wells showed hydrocarbons but not at economic levels. Exploration is still in progress.
Operators:
Energy Operations Argentina LLC: Operator with 50% interest (bought from Americas Petrogas through Argentine subsidiary Energicon in November 2016)
Madalena Energy Inc.: 50% interest