Americas Petrogas is pleased to provide the following updates of its oil and gas activities in Argentina as well as its fertilizer activities in Peru.
Oil and Gas
Since late January 2014, all of the Company's conventional operations at Medanito Sur have been powered via the generation of electricity from produced gas. Currently, approximately 320 to 350 thousand cubic feet per day (Mscf/d) is used for power generation, process heating and gas compression, while the remainder of the gas production is being injected into the El Jabali Field.
In April 2014, the gas reinjection program at the El Jabali field on the Medanito Sur block was fully operational, injecting approximately 1 million cubic feet per day (MMscf/d) or more into the reservoir. The gas reinjection capacity is approximately 7 MMscf/d. More recently, gas reinjection has increased to approximately 2.8 MMscf/d.
The gas reinjection program appears to have moderated the declines in our conventional oil production on the Medanito Sur block and the Company continues to study the effects of the gas reinjection program on the reservoir. Current production is approximately 1,765 barrels of oil equivalent per day (boepd), including gas production of approximately 565 boepd, which is being used for internal power generation and reinjection.
Reprocessing of the 3D seismic data on the Medanito Sur and Rinconada Norte blocks is mid-process and remains ongoing. As well, reprocessing of the 3D seismic data on the Los Toldos I block commenced in July 2014.
The Company is in discussion with the government to extend the exploration period of Lomas Ranqueles due to rig availability.
Americas Petrogas, with Yacimientos del Sur, a subsidiary of YPF, continues negotiating with the Neuquén province for a contract extension on the Huacalera block.
Fertilizer
Americas Petrogas, through its subsidiary, GrowMax Agri Corp, has engaged Golder Associates Ltd. to prepare a National Instrument (NI) 43-101 mineral resource technical report for potential filing with a securities commission/exchange. As per NI 43-101 requirements, all work will be performed by or under the supervision of a Golder Qualified Person (QP) as per the definition provided in NI 43-101. As well, GrowMax has engaged Geominex Consultants Inc. to assist in the process.
