6th Jan 2014 08:55
LONDON (Alliance News) - Andes Energia PLC Monday said drilling has begun at the Las Varillas x-1 exploration well in the El Manzano West block of the Neuquen basin, Argentina.
The Latin American exploration and production group said the new well, as part of a joint venture with YPF SA, is located 1.5 kilometres from the successful Mirador del Valle x-1 well discovery made in November.
The light oil find at the Mirador del Valle site produced at average flow rate of 535 barrels of oil per day during testing, with the potential for 15 million barrels of recoverable resource.
Drilling at the new site will take multiple core samples for testing to a total target well depth of 2,250 metres.
Andes has a 100% working interest in all production from the Agrio formation at the site and a 40% carried interest in the other formations. The company said it is fully carried through drilling and testing of the well, which is expected to be completed by the end of January.
Andes Energia shares were up 7.6% to 57.00 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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