Today, a blockbuster investment will be announced by YPF and Petronas (Malaysia) in the
La Amarga Chica block.
As shown on the map, La Amarga Chica is very close to Madalena’s
Coiron Amargo block, which will go into production in January, with its joint-venture partner, Pan American Energy. Madalena’s Net Contingent Resources (NCR) in Coiron Amargo was last audited at
USD 1.456bn (
USD 2.67/share), without giving any value to recent peso depreciation and resulting cost reductions. In September, the company and its JV partner (Pan-American Energy; PAE) received a
35-year unconventional, development concession. Drilling and production is fully funded by PAE. The company expects that the pilot program can achieve even further improved economics (longer laterals, ~2500 meters) than the current NCR assumes, leading to even more profitability.
YPF Is Said to Plan $2bn Next Stage of Petronas Vaca Muerta JV (Bloomberg) -- State-run Argentine driller will announce on Tuesday that it’s moving from test wells to full development in La Amarga Chica, a JV with Petronas in the Vaca Muerta shale play, according to a person with direct knowledge.