The Neuquén Province government has approved ExxonMobil’s (NYSE: XOM) investment plan for development of a 35-year unconventional exploitation concession in the Los Toldos I South Block in Argentina's Vaca Muerta Shale. The initial investment of about $200 million calls for a pilot project that brings up to seven wells to production, the construction of production facilities and development of export infrastructure.
ExxonMobil and its partners, Gas y Petroleo del Neuquén and Americas Petrogas Argentina SA (APASA), are looking for opportunities to further develop this block and bring wells into production.
If the pilot project is successful, it could lead to a staged development of about 300 horizontal wells of up to 3,000 m (9,843 ft) in length. The block could have estimated production of 11 million cubic meters per day of gas when at full production.
Los Toldos I South is located 85 km (52 miles) northwest of Añelo and 175 km (108 miles) northwest of Neuquén city. ExxonMobil Exploration Argentina S.R.L (EMEA) is the operator and holds 80% interest in partnership with Gas y Petroleo del Neuquén, which holds 10% interest, and APASA (Tecpetrol), which has 10%.
To date, ExxonMobil’s investment in exploration and early development of its Vaca Muerta operations has exceeded $500 million since it began exploration and early development in the area.
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