Project Profile
Value: Undisclosed
Location: Southwest area of the Neuquén basin, close to the fold and thrust belt, northern flank of the Dorsal, Argentina
Reserves: Unknown
Area: 78,560 net acres
Start-up Year: -
The Covunco Norte-Sur Block is located in the southwest area of the Neuquén basin, close to the fold and thrust belt and to the northern flank of the Dorsal in Argentina, covering an area of 78,560 net acres. The Block has previous gas discoveries in conventional reservoirs, which were not put in production due to soft gas markets at the time. Although the area is considered gas-prone for those targets, there have been recent oil discoveries by Apache and Repsol in nearby blocks. The area has 2D seismic data and Azabache has shot 176 square km of 3D seismic and conducted special seismic studies (Coherency, AVO, LMR & AI) to detect favourable reservoir targets. Potential pay zones are the Lajas, Lotena and Tordillo Jurassic formations located at a depth of between 2,000 and 3,000 metres. As a result of the discovery by YPF of Vaca Muerta’s shale oil and gas in the Neuquén Basin, a new exploration frontier has been opened in Argentina. Azabache Energy, with its Covunco Norte-Sur/El Corte Blocks, wants to be a player in this new scenario that has great potential for oil and gas resources. In order to achieve this goal, the company has already undertaken geochemical and petro-physical analyses of the Vaca Muerta and Los Molles source shales in the existing wells of the blocks. Based on the encouraging results of these data, Azabache is planning to drill a vertical pilot well to Vaca Muerta shale to evaluate its potential as a non-conventional reservoir. The block is owned by Azabache Energy, which is currently carrying out a drilling program in the area. In end 2012, the company secured extensions on the exploratory block.
Operators:
Azabache Energy: Operator with 90% interest
Gas Y Petroleo (GyP): 10% interest.
Updated by TM