Americas Petrogas is pleased to announce that preparations for the La Hoya.x-1 well in the Totoral block are complete and the drilling rig is expected on location in early June. The primary drilling target of the La Hoya.x-1 well is the Vaca Muerta shale. The Totoral block, of which Americas Petrogas is the operator and holds a 90% working interest, is approximately 293,600 acres or 1,188 square kilometers and is located in the southern region of the Neuquen Basin of Argentina. Gas y Petroleo del Neuquen holds the remaining 10% interest.
The La Hoya.x-1well is planned for drilling to a total depth of approximately 2,000 metres with the principal target being the Vaca Muerta shale formation. This is a significant well for the Company since it will be the first Vaca Muerta test in this block, which lies in the Picun Leufu Sub Basin. The well is located 16.6 kilometres northwest of the Canadon CN.x-2 well drilled by YPF in 1962 which tested oil in the Quebrada del Sapo sandstone. The La Hoya.x-1 is located on a present day syncline where the Vaca Muerta reaches its deepest position in the block and where higher formation pressure is expected. Geochemical analysis indicates that the Vaca Muerta is in the early oil window. In addition to the Vaca Muerta, the Picun Leufu Sub Basin offers other opportunities in formations such as the Los Molles shale as well as conventional Pre-Cuyo, Mulichinco, Quintuco and Quebrada del Sapo. The Picun Leufu Sub Basin is a relatively unexplored depocentre.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, “Our first exploration well in this depocentre is primarily targeting the Vaca Muerta shale. Subsequent drilling is expected to target Vaca Muerta and Los Molles shales, both at relatively shallow depths, as well as other targets. A discovery in any of these potential reservoirs would initiate a new play trend, de-risking a large area and adding significant value.”
