The state government of Sala in Argentina awarded the Valle de Lerma exploration and exploitation oil and gas block license to Delta Mutual under Salta Governor Decree No. 4519 dated Oct. 25.

The license covers an area of approximately 5,259 sq km and is located in the northwest Cretaceous Metan Basin around the capital city of Salta, which is about 1,700 km northwest of Buenos Aires. The license is for 20 years for exploration and production of hydrocarbons with a renewal option of 10 years.

Delta and its partner, Grasta Petroleum, a mid-size refinery, will develop the plan for exploration, including: 2D seismic interpretation by Nexus LLC; a geological model application and hydrocarbon micro-seepage survey by Geo Microbial Technologies Argentina; and workover of the La Troja well by a local rig contractor. The Cretaceous zone will be the target in both old and new wells.

In the past, YPF explored the Valle de Lerma Block. Several lines of 2D seismic were performed and two exploration wells were drilled in December 1990 and November 1994.

The exploration terms are four years for the first period, three years for the second and two years for the last period.

Delta expects to start the workover of the La Troja well in the fourth quarter. SAHF, Delta’s Argentine subsidiary, holds controlling interest and is the operator.