YPF signs agreement for Rincón del Mangrullo block extension in Argentina
Argentinean oil and gas company YPF has signed an agreement with the province of Neuquén to obtain an unconventional exploitation concession in the Rincón del Mangrullo block, located in the centre-east of Neuquén province.
YPF is the operator and licensee of the block and jointly holds it on 50:50 basis with Pampa Energía’s subsidiary Petrolera Pampa.
Under the agreement, in exchange for a 35-year extension to the concession, YPF and Petrolera are required to spend $150m to undertake a pilot programme to continue to develop Mulichinco tight gas formation.
YPF president Miguel Gutiérrez said: "The agreement generates a beneficial horizon to expand investments in Rincón del Mangrullo and boost its development in non-conventional gas formations.
“We are confident to extend the very good results obtained in the Mulichinco formation, which we jointly developed with Petrolera Pampa, the Lajas and Vaca Muerta formations.”
The pilot programme comprises drilling of 13 horizontal wells and is aimed at evaluating the potential in Las Lajas tight gas and Vaca Muerta shale gas formations.
Petrolera only participates in the block’s tight gas development and needs to contribute 30% of the total amount as part of its share.
In the Rincón block, which is spread over an area of 183km², 116 wells have been drilled to date, with a gas production of 177 million cubic feet per day.