14th Nov 2013 11:34
LONDON (Alliance News) - Andes Energia PLC Thursday said it has discovered light oil in drilling tests at its Neuquen basin project in Argentina, news that potentially opens up another shale oil play beneath the discovery.
The company said it had struck light oil in an exploration well at Mirador del Valle, a joint venture with YPF SA, after drilling down to 1,789 metres and producing an average rate of 535 barrels of oil a day. It said initial evaluations determined a potential of 15 million barrels of recoverable resource, of which 6 million barrels is attributable to Andes.
"The Mirador del Valle x-1 discovery opens a very profitable conventional play in the block in the South Mendoza Province, where Andes has the second largest acreage position," Chief Executive Alejandro Jotayan said in a statement.
The discovery also means a shale oil formation some 1,000 metres below the Neuquen basin, known as the Vaca Muerta formation, is now less risky because it is the source of the oil that has migrated to Neuquen. It is planning to drill down to reach this formation in the near future to test its potential.
Andes Energia shares were up 11.7% at 24.30 pence Thursday morning, one of the biggest gainers on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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