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Oil exploration discovery in the Lower Agrio Shale, Argentina

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Oilfield Technology,

Madalena Energy Inc. has reported the initial results of its completion and testing of the Lower Agrio shale formation on its 90% working interest operated block at Curamhuele in Argentina.

Highlights include:

The successful completion of the vertical exploration well (Yapai.x-1001) with four hydraulic fractures at depths of 3731 m, 3647 m, 3566 m and 3457 m, the upper three intervals being within the Lower Agrio shale and the lowest interval containing both the Lower Agrio shale and Mulichinco tight sand formations. All four frac intervals are believed to have penetrated the primary target in the Lower Agrio shale.

The pumping of an aggregate of approximately 430 000 lb of sand and 13 700 bbls of frac water over four days, (flowed at 408 boe/d over last 24 hours on a 9.5 mm choke, comprised of 350 Bbls/d oil, 389 bbl/d water (47% oil cut) and 350 mcf/d of gas at a flowing pressure of 1050 psi)

The oil is light sweet oil with a field estimated gravity of 40 API.

Kevin Shaw, President and CEO, commented: "We are extremely pleased with the results from this vertical exploration well at Curamhuele and oil discovery in the Lower Agrio shale. Ultimately this Lower Agrio shale play, like the Vaca Muerta shale, will be developed with Horizontal Multi frac wells which are expected to yield considerably more than a typical vertical well."

Edited from press release by

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