Americas Petrogas is pleased to announce that, as a follow-up to its press release of May 24, 2012, drilling has commenced on the La Hoya.x-1 (LHo.x-1) exploration well in the Totoral block. The primary drilling target is the Vaca Muerta shale. The Totoral block, of which Americas Petrogas is the operator and holds a 90% working interest, is approximately 293,600 acres or 1,188 square kilometers and is located in the southern region of the Neuquen Basin of Argentina. Gas y Petroleo del Neuquen holds the remaining 10% interest.
The LHo.x-1 well is planned for drilling to a total depth of approximately 2,000 metres with the principal target being the Vaca Muerta shale formation. In addition to the Vaca Muerta, there are other opportunities in formations such as the Pre-Cuyo, Mulichinco, Quintuco and Quebrada del Sapo. The LHo.x-1 well is located 16.6 kilometres northwest of the Canadon CN.x-2 well drilled by YPF in 1962 which tested oil in the Quebrada del Sapo sandstone.