Pan American Energy gains contract approval for Vaca Muerta blocks
Pan American Energy SL Sucursal Argentina and state-owned Gas y Petróleo del Neuquén Sociedad Anónima (GyP) gained approval from Argentina’s Neuquén provincial government for an exploration, development, and production contract.
The contract, for Aguada de Castro Oeste Blocks I and II to be operated by Pan American Energy, was finalized Aug. 16 and approved by regulators Oct. 12. It is part of GyP’s plan to seek Neuquén basin development partners.
The preliminary work scope for the initial 4-year exploration period, as presented by the companies, includes drilling of an exploration well in Block I and a second in Block II, to be drilled horizontally for about 3,000 m at a vertical depth of 2,800 m and including completion of 45 fracturing stages. Associated investment is more than $65 million.
Aguada de Castro Oeste Blocks I and II lie in central Neuquén Province, Añelo department, in the central portion of Neuquén basin in the dry gas window of the Vaca Muerta formation.
Currently, Pan American Energy operates six areas in Argentina, two in partnership with GyP. The company is a non-operating partner in two additional areas.
With the new contract, along with neighboring concessions of Aguada de Castro (ACAS) and Aguada Pichana Oeste (APO), Pan American forms a dry gas hub.
Camilo Ciruzzi | South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.