Americas Petrogas (Americas Petrogas or the Company) is pleased to announce that the La Hoya.x-1 (LHo.x-1) well, which is the first Vaca Muerta Shale vertical exploration well drilled in the Totoral block, has been cased and cemented. A full suite of logs and both conventional cores as well as sidewall cores have been acquired. Production casing has been successfully set to a total depth of approximately 6,463 feet. The well penetrated 666 feet of the primary target Vaca Muerta Formation with oil and gas shows through the whole shale column. Hydrocarbon shows were also encountered and data acquired in the Mulichinco (299 feet thick), Quintuco (2,172 feet thick), and Quebrada del Sapo (190 feet thick) formations.
The Company has begun detailed analysis of the cores and cuttings at international service company laboratories in Argentina. This is expected to significantly reduce the time required to identify fracing and testing options for shale oil or shale gas reservoirs, as well as other identified targets.
The Totoral block, of which Americas Petrogas is the Operator and holds a 90% working interest, is approximately 264,240 net acres (1,069 square kilometers or 413 sections net) and is adjacent to two other Americas Petrogas Operated blocks, Yerba Buena (311,310 acres or 1,259 square kilometers or 486 sections net) and Bajada Colorada (438,390 acres or 1,774 square kilometers or 685 sections net), which are also held 90% by the Company. All three blocks are located in the southern region of the Neuquen Basin of Argentina. Gas y Petroleo del Neuquen holds the remaining 10% interest in the three blocks.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, “We are very excited about the oil and gas shows on this new play in the southern region of the Neuquen Basin. This well represents a major step towards de-risking a large area and adds significant value to our shale block portfolio. The drilling, casing and cementing of this well were conducted in a very efficient and timely basis. This is a result of our experienced and expanding technical team in Argentina whom we congratulate.”
