Client alert

     Vaca Muerta - Exploration investment opportunities: 
New Horizons Plan and Neuquén Exploration Plan

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:
  1. Aguada de Castro Oeste I and II
  2. Bajo del Toro Este
  3. Cerro Arena Sur
  4. La Tropilla I
  5. Las Tacanas Norte
  6. 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
COMMITMENT OF THE FIRST EXPLORATORY PERIOD
WORKING UNITS
Aguada de Castro Oeste I and II
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.
3000 W.U.
Bajo del Toro Este
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.
2730 W.U.
Cerro Arena Sur
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.
2900 W.U.
La Tropilla I
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.
2775 W.U.
Las Tacanas Norte
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.
2880 W.U.
Parva Negra Oeste
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.
5600 W.U.

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").
 
Under the "Neuquén Exploratory Plan", 50 exploratory areas will be tendered to partner up with third parties. The tenders for these areas will be carried out through quarterly calls and companies will be able to submit bids according to the rules and conditions stipulated in the respective bidding documents. According to the schedule defined by GYPNQN, the first Quarterly Opening of the Neuquén Exploration Plan will be held on October 2, 2017.

This Newsletter is a free service provided by Mitrani Caballero Ojam & Ruiz Moreno for informative purposes only. 
 
For further information, please  contact: 
Julio Martínez  julio.martinez@mcolex.com  or  María Recondo  maria.recondo@mcolex.com

We invite you to visit our website  and follow us on  Facebook LinkedIn  and Twitter