As previously reported, the Medanito Sur block is 106 square kilometer (50,900 acres) in size and has major producing oilfields to the west (Petrobras), as well as other producing oilfields to the north and south. Americas Petrogas, as operator, is entitled to receive 70% of the cash flow until recovery of capital expenditures.
Barclay Hambrook, President and chief executive officer said: This is a most important milestone in Americas Petrogas history as the Company will be establishing cash flow and first production of about 800 bopd of sweet light (34 degrees API) crude oil.
The company also announces that more recent analysis and integration of well and seismic data on the Medanito Sur block has led to the identification of up to 25 additional lower risk drilling targets.
Carlos Lau, chairman stated: “America Petrogas is well positioned in Argentina’s most prolific oil and gas basin of Neuquen (i.e. Argentina’s Neuquen basin is the same oil and gas basin where Petro Andina and Repsol YPF are focused). Mr. Lau congratulated all Americas Petrogas’ team members for advancing the Company to near production and cash flow stage and thanks all investors for continued support.
