Brownstone Ventures Inc has been advised by the operator, Petrolifera Petroleum Limited, and provides the following update on its Vaca Mahuida license, situated southeast of Puesto Morales.
Petrolifera, as the operator and owner of a 25% carried interest, advises that a total of five wells have recently been drilled. All five wells have encountered hydrocarbons in one or more of the Centenario, Loma Montosa, Sierras Blancas, Punta Rosada and Pre-Cuyo Formations. This has confirmed both hydrocarbon migration and trapping in the Vaca Mahuida License. Test results to date for these wells are as follows:
- VM.x-2014 well - completed as a natural gas well; tested approximately 1.0 MMcf/d dry gas from the Centenario;
- Los Fenicios - LFe.x-1 well - tested 80 bbl/d of crude oil and 1.5 MMcf/d of dry gas from the Centenario - with the Sierras Blancas to be further evaluated at a later date;
- Los Griegos - LG.x-1 well - tested 1.45 MMcf/d dry gas from the Centenario, 2.2 MMcf/d dry gas from the Loma Montosa; 1.5 MMcf/d dry gas from the Sierras Blancas;
- Pampas - Pa.x-1 well - to be evaluated by testing; and
- Yaganes - Ya.x-1 well - recently reached TD with numerous shows to be evaluated.
The full impact of the program and the follow up drilling opportunities will be evaluated and assessed once all testing is completed. Brownstone has been advised that Petrolifera is optimistic about the possibility of a multi-well follow-up drilling program on certain of these plays and on the possibility of securing "Gas Plus" pricing for much of the new natural gas to be produced from the discoveries.
The 253,000 acre (approximately 1,025 square kilometers) Vaca Mahuida Block is in the province of Rio Negro, Argentina, where Brownstone is incurring 50% of the costs of the Vaca Mahuida project to earn a 25% working interest.
