News out ..this why the sp is heading south ArPetrol Ltd. announces a new addition to its management team and provides an operational update2 minutes ago by CNW Group
ArPetrol Ltd. ("ArPetrol" or the "Company") (TSX-V: RPT) is pleased to announce that Pedro Americo Sanchez will be joining our Buenos Aires based team as our in-country manager effective April 2nd, 2012. Pedro joins us following an extensive career with Repsol-YPF, Astra and Occidental in Argentina, Peru and Bolivia. Most recently Pedro has been the Director of Energy for the Provincial government of Mendoza. Pedro will be replacing Troy Wagner, who has been resident in Buenos Aires for ArPetrol since 2007 and is leaving the Company for personal reasons.
Tim Thomas, ArPetrol President and CEO commented, "We are delighted to be able to welcome Pedro into the ArPetrol team at a very exciting time in the Company's growth. With the start-up of the Faro Virgenes gas field long reach drilling program and the added cash flow expected to be generated by impending production increases, the Company will be well-positioned to take advantage of the broad range of opportunities that exist in Argentina. I would like to thank Troy Wagner for all he has accomplished in Argentina and for assembling a very high quality team to execute our business plan."
Operational Update
ArPetrol has initiated the mobilization for a June, 2012 spud of the first long reach well in the Faro Virgenes field. The first well will take 45-50 days to drill and is targeted to have initial production rates in excess of 6 MMscf/d. Plans are in place to drill two wells, depending on the results from the first well. Production from these wells would be immediately tied into ArPetrol's 100% owned gas plant, which is in close proximity.
Other exploration opportunities on the Faro Virgenes concession may be pursued under a subsequent drilling program that will be evaluated after cash flow begins to be generated from the long reach drilling program.
ArPetrol would also like to provide an update to the 2011 and early 2012 drilling program that was recently completed. The program was conducted in two blocks, Blanco Los Olivios Orientale and Catriel Viejo Sur. These blocks were acquired as part of the asset package when ArPetrol purchased Geodyne Energy S.A. and the Faro Virgenes asset. Through completion of this program, ArPetrol will have fulfilled the work obligations for those assets, allowing ArPetrol to now focus on its key Faro Virgenes asset.
In the Blanco Los Olivios block, in which ArPetrol holds a 20% working interest, two wells were drilled to test shallow Tertiary targets. Although hydrocarbons were encountered, they were deemed to be sub commercial in size, and both wells have been abandoned. At Catriel Viejo Sur, ArPetrol elected to increase its working interest from 20% to 50%, and a well was recently drilled to test a shallow Tertiary target as well as evaluate the unconventional potential in the Vaca Muerta shales. The Tertiary Centenario was found to be wet at this location and, although oil was found in the Cretaceous Tordillo formation, the reservoir was deemed to be too tight to be commercial. The core and wireline logs from the Vaca Muerta shales are still being evaluated.
Tim Thomas, President and CEO of ArPetrol said, "We are pleased with the progress made to date with respect to our strategy. ArPetrol has met all of the commitments in the Nequen basin program and has demonstrated our ability to execute a multi-well drilling program in Argentina. We anticipate that cash flow from our 2012 long reach drilling program at Faro Virgenes will position us for further growth."
The Company's unexpired mining leases from its predecessor, RPT Resources Ltd., have been transferred to a third party in exchange for a net smelter royalty.