"Someone must be trying to undermine our excellent relationship with Río Negro," Gusella said. "We have four rigs working in the province with four service rigs and that sure doesn't look like a midnight escape to me." Since it embarked on its original drilling program at Puesto Morales in late 2005, Petrolifera has made a number of significant new discoveries. The company has, since its formation, drilled approximately 60 wells in Argentina, with only one dry hole and one suspended well. Several new pool discoveries have been made and the company has produced over four million
. barrels of crude oil, all found through the drill bit.
Capital investment in Argentina, since 2005, has thus far totalled $90-million through Sept. 30, 2007, and as indicated, planned fourth quarter 2007 expenditures are $45.5-million with an announced 2008 budget of $76-million. In addition to this capital investment, Petrolifera has paid almost $30-million of royalties to the province of La Pampa and has paid over $40-million of cash income and other taxes to the government of Argentina.
About Peru:
The Vaca Mahuida Block is located along the northeastern shelf area of the Neuquén Basin situated in west central Argentina in the province of Rio Negro. The Block is 1025 km2 (253,000 acres) in size and lies immediately south of the Rinconada Block that is currently being developed by Petrolifera Petroleum Limited (PDP) which company is conducting follow-up drilling to their recent discovery in the Jurassic aged Sierras Blancas Formation (SB).
The Block is currently covered by 540 km2 of 3d seismic shot by Chevron in the late 1990’s and 2d seismic of multiple vintages. To date 12 exploration wells have been drilled on the Block, one of which tested 10MMcf/d gas from a thin interval in the Jurassic Loma Montosa Formation (LM). Additionally there have been multiple shows in the SB as well as in the deeper Triassic section and the shallower Cretaceous Centenario Formation.
The current work program proposed to the Rio Negro Government consists of approximately 1250 km2 of 3D seismic and the drilling of 12 exploratory wells. The estimated actual cost of this program is approximately US$20 million. The state’s value in accordance with the work units bid, is valued at US$36 million. If minimum work is not fulfilled, then cash payments are made at this level.
The primary objective on the Block is a combination stratigraphic/structural play within the SB, a play that has conceptually proven to work in area as attested to by the success of PDP in the Rinconada Block to the north (Figure 1). This play is expected to continue into Vaca Mahuida (Figure 2) along the western flank of a large northwest trending basement high (Figure 3)
Additionally, combination stratigraphic/structural-type plays exist in the LM and Centenario which have been proven to be productive on the PDP Puesto Morales Block to the northwest.
The first well to be drilled on the Block will be the VM 1001 well. This is situated on a four-way dip closure immediately south of the Rinconada Block and southwest of the R x-1029 well (Figure 3) which was recently cased as potential SB/LM oil well. Testing of this well will commence sometime in September 2008.
PDP:TSX Petrolifera
WOW
And as I recall they were drilling for water
and damn they hit oil again.
Buy PDP
The SN2 TEA is 879,100 acres (38 townships) in size
and is located in the Lower Magdalena Basin. It offsets known crude oil and natural gas accumulations. The 14 month work commitment associated with this TEA is the reprocessing of 650 kilometers of seismic and the completion of geological and geophysical studies.
With the signing of this TEA,
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