Gas y Petróleo del Neuquén S.A. ("GYPNQN") the provincial company in charge of procuring the exploration and subsequent exploitation of the blocks that were reserved by the Province of Neuquén, launched Bidding Round V of exploration areas of oil and gas denominated "New Horizons Plan", and the "Neuquén Exploration Plan" .
Under the New Horizons Plan, the following hydrocarbon areas are being tendered:
- Aguada de Castro Oeste I and II
- Bajo del Toro Este
- Cerro Arena Sur
- La Tropilla I
- Las Tacanas Norte
- Parva Negra Oeste
The sale of bidding documents will occur between May 3 and May 19, 2017. The submission and opening of bids will be done on September 14, 2017, with the awarding and signing of the contracts slated for the end of October 2017.
The minimum commitments that the interested companies must comply with are:
AREA
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COMMITMENT OF THE FIRST EXPLORATORY PERIOD
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WORKING UNITS
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Aguada de Castro Oeste I and II
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1. Drilling of one well with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
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3000 W.U.
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Bajo del Toro Este
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1. Drilling of one well with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
2. Characterization of the Mulichinco Formation by means of logs and 30 special petrophysical tests on lateral core samples.
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2730 W.U.
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Cerro Arena Sur
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1. Drilling of one well with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
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2900 W.U.
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La Tropilla I
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1. Drilling of one well with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
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2775 W.U.
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Las Tacanas Norte
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1. Drilling of one well with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
2. Characterization of the Mulichinco Formation by means of logs and 30 special petrophysical tests on lateral core samples.
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2880 W.U.
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Parva Negra Oeste
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1. Drilling of two wells with a 1500 meters horizontal section, Vaca Muerta as the objective Formation and unconventional termination by performing at least one fracture stage every 100 meters.
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5600 W.U.
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As foreshadowed by the GYPNQN authorities, the bidding documents contemplate a 10% participation of GYPNQN during the exploration stage. In the event that a commercial discovery of the area is declared, GYPNQN may choose to invest in the block according to its participation or to convert that 10% of participation to a production fee equal to 2.5% of all hydrocarbons produced from the exploitation area ("production sharing payment").