ExxonMobil Discovers Gas in Argentina

Exxon Mobil Corporation announced that its affiliate, ExxonMobil Exploration Argentina jointly with Gas y Petroleo del Neuquen, has discovered oil and gas in an unconventional shale well in Neuquen Province of Argentina.

Located in the liquids-rich area of the Vaca Muerta play, the Bajo del Choique X-2 well was drilled to a total measured depth of approximately 15,000 feet (4,570 meters). The horizontal leg of the well extends for 3,280 feet (1,000 meters).

The well was completed in the Vaca Muerta formation and flowed at an average rate of 770 barrels of oil a day on a 12/64 inch choke in its first flow test. Data analysis and additional studies are being conducted to fully evaluate this discovery. Appraisal wells will also need to be drilled before a commerciality decision can be made.

“Not all shales are alike, so our first ExxonMobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquen Province holds great promise as a liquids-rich unconventional resource for Argentina,” said Stephen M. Greenlee, president of ExxonMobil Exploration Company.

Governor of Neuquen Jorge Sapag said, “I am pleased that the association between ExxonMobil and GyP is starting to deliver excellent results as expected by energy analysts on the potential of the Vaca Muerta formation in Neuquen.”

ExxonMobil is operator and holds 85 percent working interest in the Bajo del Choique Block. Gas y Petroleo del Neuquen holds 15 percent interest.

ExxonMobil Exploration Argentina holds interests in approximately 900,000 net acres in the unconventional shale oil and shale gas plays of the Vaca Muerta in Neuquen Province.

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Press Release, May 22, 2014; Image: ExxonMobil