OTCQX:MDLNF - Post Discussion
Post by
MaglanCapital on Sep 18, 2018 10:46am
PAE starts a new shale oil pilot in Vaca Muerta for USD120mm
https://www.rionegro.com.ar/region/pae-inicia-un-nuevo-piloto-de-shale-oil-en-vaca-muerta-por-u-s120-millones-FY5717326
See article reported locally translated
PAE starts a new shale oil pilot in Vaca Muerta for US $ 120 million
It will be in partnership with Madalena Austral and state company GyP, which will participate through the carry system. The province will take a bonus of one million dollars.
The provincial government today announced the concession of the Coiron Amargo Sur Este area to Pan American Energy (PAE), Madalena Austral and GyP to start a pilot project of unconventional oil in Vaca Muerta. It will be to drill eight wells in four years, for an investment of 120 million dollars.
The operator will be the firm of the Bulgheroni family, which will participate with 55%, while Madalena will administer 35% and the state oil company will keep 10% of the profits under the carry mechanism.
The announcement was made this morning by Governor Omar Gutirrez, who stressed that it is the 31st concession for Vaca Muerta. "In a complex time in the country to find investments, Neuqun continues to generate this great energy development," he said.
PAE stayed with the operation of the area after buying a part from the oil company Madalena Austral, which had 90%. Coirn Amargo Sur Este has an area of 227.76 square kilometers and potential for the production of shale oil.
The concession signed by Gutirrez incorporates an amount of 3 million dollars in concept of Corporate Social Responsibility (CSR) and an infrastructure bonus of 1 million dollars that will enter the provincial coffers "in the coming days".
The president also affirmed that he spoke with the now Secretary of Energy of the Nation, Javier Iguacel, to demand that the 700 million dollars necessary to sustain the price path of the Gas Plan be incorporated into the 2019 Budget.
"I have made it known that the pending projects should be approved as soon as the budget is presented to clear the doubts of the operators and investors," he said.
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