ARGENTINA: YPF And Pampa Energía To Expand Gas Exploration In Neuquén

(RTTNews) - Argentina's YPF agreed with the province of Neuquén to obtain a concession to explore shale gas in the Rincón del Mangrullo block, where it will invest US$ 150 million. The operation is jointly developed by Petrolera Pampa, subsidiary of Pampa Energía, in a 50-50 agreement with YPF.

YPF will carry out a pilot program in which it will drill 13 wells to keep on developing the Mulichinco formation and to investigate other areas, such as the Vaca Muerta field. Pampa will only participate in the development of Rincón del Mangrullo.

YPF will be able to exploit the block until 2052, with the possibility of extending this term. The entry into force of the agreement is subject to the granting of the concession by the Neuquén provincial government.

The Rincón del Mangrullo block is located in the center-east of Neuquén. It covers an 183 square kilometers area. Currently, there are 116 drilled wells producing 5 million cubic meters (m3) per day of shale gas.