The Vaca Muerta and Los Molles shales are the principal source rocks in this basin. YPF guesses that the shale gas resource base in the Neuquen is over 250 trillion cubic feet (Tcf). Argentina’s annual gas consumption is 1.5 tcf and its proven, documented, reserves are about 15tcf so the discovery is far more significant for Argentina than the Barnett was for the U.S.
This field alone is worth 50% of the stock price with conservative assumptions. YPF has only scratched the surface of its vast acreage, They are the PBR of Argentina. Reserve additions will show up in reserves numbers and we will see NAV higher than the stock price.
This all sounds like an early Haynesville, Barrnet, Marcellus shale play. Stock could double and it is depressed after Repsol's sloppy offering.
There are signs that that the initial discovery is just the tip of the iceberg. YPF 's CEO, Sebastian Eskenazi, said that initial exploration had been limited to a small section of the prospective area, and that that 'huge volumes' of shale and tight gas had been identified that would guarantee the country's gas supplies for many years to come.
YPF said that it will team up with Brazilian mining company Vale to begin a 26-well programme to develop the discovery. Several U.S. oil and gas companies are farming in. Apache and Anadarko along with Total will joint venture. Since Argentina has easily passable terrain for pipelines, a world class LNG facility on the East coast is feasible. This is a game changer Sebastian Eskenazi, CEO
To be more precise. 250,000,000,000 billion MCF (250TCF) in the ground is worth a minimum of $1/mcf. You can sell LNG for $5/MCF and it would cost $$1/MCF to get into liquid. If you just use $.50/MCF in the ground, the reserve is worth $125 Billion. The market cap is $20B. Just this find is worth 6X the current market cap.