Shale is expensive to produce but is the cheapest to bring back on stream. Saudis have long term budget issues and no way out
BUENOS AIRES, Argentina -- Wintershall and the local state-owned energy company Gas y Petróleo del Neuquén have signed an agreement under which Wintershall will increase its interest in Argentina's Aguada Federal Block from 50% to 90%.
In March 2015, Wintershall began with an own-operated exploration campaign in the block; the company has already drilled two vertical exploration wells, which are currently being tested. The exploration wells aim to provide important information about the characteristics of the crude oil and natural gas reservoir, which includes promising shale rock of the Vaca Muerta formation.
Google the title for another positive article on Oilpricedotcom
We have results on the YPx-1 but unless I read this wrong how about the CHx-1? Below is from current presentation
Well logs and tests on two key wells
- CH.x-1 – Lower Agrio Oil test
3,000 – 3,200 m
- YP.x-1 – Mulchinco gas and liquids test
I liked the comments on the need for a very heavy drilling mud. Would be nice to see a little more detail on what was found pressure wise in each zone
This is about ten days old but have not seen much on it. This could be big for Madalena and their Puesto Morales project.
Argentina will seek to increase gas prices to incentivize production, the new Energy Minister Juan Jose Aranguren said on Monday, following elections last week that brought to power a center-right government. Latin America's third-largest economy is seeking to combat its energy deficit, which is draining already-low foreign reserves. It relies heavily on imports of liquid gas. "In the case of natural gas, we are going to start recovering the price of gas at the wellhead in order to remunerate appropriately investment in local production," Aranguren said at an event in Buenos Aires. Aranguren also said the new government under conservative President Mauricio Macri would maintain the shareholder structure of energy firm YPF. Since 2012, the Argentine government has held a 51 percent stake in the company. Many voters have feared Macri might privatize companies nationalized under former President Cristina Fernandez. -
It should be noted these investments in the Vaca Muerta are happening the the middle of a massive bear market for oil. Makes it all the more impressive
Interesting that Oil imports are up close to a million barrels a day over the last few weeks. Wonder why when US Production continues to hold steady.
Are the speculators anticipating a shift soon in the price of oil?
The lack of a true free market in Argentina will always hang of the oil companies operating there. Re-enforces my desire for a buyout after Curamhuele section reserves have been further proved up. Strong results from fracking the 2 wells the first of the year could go a long way to driving the share price up
Balance of PR on Curamhule update. This is the detail I am waiting for an update on. Good news could make us all some money
"Based on these favourable results, Madalena is designing a completion program to test and co-mingle production from the Mulichinco with the Lower Agrio shale through a four stage unconventional hydraulic fracture treatment. It is expected that the natural gas from the Mulichinco will add an element of gas lift and improve flow characteristics of the Lower Agrio oil. Due to the complexities and logistics with these types of completions, the Company anticipates it will complete the well early in 2016."
Surprised the market did not respond to the news. This is a solid step to increasing the asset value of the company and ultimately the takeover price.
Good for Rockpile in long term
Google the article. short but a good read
Disappointing to not see any well updates in the presentation. Maybe something comes out in today's conference. Wondering who else will be speaking
Aubrey McClendon is back and has big deal with YPF. Google the above message title for details. Aubrey definitely knows how to drill a horizontal shale well