Americas Petrogas said Monday its subsidiary Americas Petrogas Argentinaand venture partner Gran Tierra Energy discovered oil in the first of three exploration wells on the Rinconada Norte block in the Neuquen Basin in western Argentina.
The Rinconada Norte block measures approximately 96 square kilometres, and adjoins to the south of the Medanito Sur block in La Pampa province in the eastern region of the Neuquen Basin. Americas Petrogas owns a 65% interest in the property, and acts as operator, while Gran Tierra owning the remaining 35%.
The RN x-1004 well, which tested two intervals in the Precuyo formation, flowed a total combined test rate of 944 barrels of oil per day, and 13,360 cubic metres of gas per day, for a total of approximately 1,023 barrels of oil equivalent per day.
The well also flowed at a 4% water cut, from depths up to 1032 metres.
Americas Petrogas managing director, Guimar Vaca Coca said: “We are very excited about this new find on the first well of this three-well exploratory drilling program because of the strong production rates and possibility of significant commercial reserves.”
The drill rig on the property has moved to the two remaining targets on the property. Based in Calgary, Alberta, the company said it expects to begin building test production facilities in the fourth quarter of the year.
Americas Petrogas’ stock on the TSX-Venture has risen over 20% this year, and closed on Friday at $1.81.
