- The gross prospective resources are 21.167 Bboe in an area of 8,071 km² (in which Repsol YPF has a net 5,015 km².2).
- The gross contingent reserves are 1.525 Bboe (in an area of approximately 1,100 km² of which YPF has a net interest of 834 km². Additionally in the same area, 116 Mboe have been booked as reserves (3P).
Press Release
8 February 2012 21:00 CET
Repsol YPF has hired hydrocarbons reserves and resources Ryder Scott to carry out an external audit of its reserves, contingent resources and prospective resources of non-conventional hydrocarbons (shale oil and gas) in the Argentinean Vaca Muerta formation in the Neuquén province. The technical analysis is based on the criteria set out by Argentinean stock market regulator Comisión Nacional de Valores de Argentina and the United States´ Securities and Exchange Commission. At the same time, the evaluation of the contingent and prospective resources complies with the requirements of the Comisión Nacional de Valores de Argentina and the Society of Petroleum Engineers’ Petroleum Resources Management System.
The Vaca Muerta formation is estimated to cover an area of 30,000 km² (7.4 million acres) of which Repsol YPF has a net 12,000 km² (3 million acres). Preliminary results indicate that 77% of the area contains oil, with the rest containing dry and wet gas.
The evaluation carried out by Ryder Scott covers a total area 8,071 km² (1,994,378 acres), of which Repsol YPF holds a net interest of 5,016 km² (1,239,407 acres) in the Neuquén area.
The work carried out breaks down the total volumes of prospective resources, contingent resources, and proved, probable and possible reserves (definitions are detailed in Annex 4).
Resources and reserves of the Vaca Muerta formation
|
Gross (100%) |
Net YPF |
|
Oil (Mbbl) |
Condensate (Mbbl) |
Gas (Mbep) |
Total (Mbep) |
Oil (Mbbl) |
Condensate (Mbbl)
|
Gas (TCF) |
Total (Mbep) |
| Prospective Resources |
5,732 |
396 |
15,038 |
21,167 |
3,966 |
224 |
8,161 |
12,351 |
| Contingent Resources |
1,115 |
0 |
410 |
1,525 |
883 |
0 |
330 |
1,213 |
| Reserves 3P |
81 |
0 |
35 |
116 |
81 |
0 |
35 |
116 |
| Possible |
33 |
0 |
15 |
48 |
33 |
0 |
15 |
48 |
| Probable |
25 |
0 |
11 |
35 |
25 |
0 |
11 |
35 |
| Proven |
23 |
0 |
10 |
33 |
23 |
0 |
10 |
33 |
Source: Ryder Scott - 1 boe = 5.615 million cubic feet of gas
The audit has determined that in an area of 1,100 km² there are 1.115 Bbbl of oil in associated contingent resources, and 410 Mboe of gas, making a total of 1.525 Bboe. For the YPF participation the contingent resources would amount to 883 Mbbl of oil and 330 Mboe of gas, resulting in a total of 1.213 Bboe.
To reach these results, Repsol YPF has made a significant technical effort in a record time, leading the exploratory effort for non-conventional resources in Argentina, after analyzing all the successful technologies used in the USA and adapting them to the geological conditions in the country. To do this, the company co-operated with a number of leading shale developers in the US that, because of the expectations generated by the Vaca Muerta shale, have partnered YPF for exploratory activity in a number of areas. Repsol YPF’s technical teams have since 2009 developed the project, spending $300 million on exploration, mapping and initial development in the Vaca Muerta formation. By 31 December 2011, the Vaca Muerta formation had produced 700,000 boe.
The encouraging results obtained so far have prompted Repsol YPF to continue exploring the area to determine the play’s full extension and productivity in oil, gas and wet gas. The company aims to drill 20 wells in 2012, solely and jointly with several partners, to continue investigating prospective resources.
With the current results, Argentina has the opportunity to reproduce the revolution in nonconventional hydrocarbons seen in the United States by developing the resources contained in the Vaca Muerta formation.
The development of the 1,100 km² explored so far by Repsol, containing gross contingent resources of 1,525 Bboe could make possible a 50% increase in Argentina’s current gas production. This would require a total investment by all stakeholders of $28 billion in the coming years to drill 2,000 producing wells which would require 60 drilling rigs more than currently operating in Argentina.
If the positive results of the exploratory wells underway are confirmed, the country’s gas output could rise 50%. This would require 1,000 wells to be drilled in a first phase, with an additional required investment of $14 billion, necessitating 40 drilling rigs more than Argentina currently has.
These 100 new rigs would more than double the current number of rigs in the Argentine, currently totalling 80.
If exploration proves successful in the Vaca Muerta formation and immediate intensive development began in the area, in 10 years its capacity could double Argentina’s existing gas and oil production. This would require a vast investing effort that would reach $ 25 billion per year in order to develop all the existing prospective resources.
A programme of such magnitude would require an important capital investment in Argentina from international markets; a powerful domestic industry (equipment, services, etc.) and competitive and highly technically qualified human resources since Argentina competes against other similar developments worldwide (USA, China, Australia, Eastern Europe, etc.).