YPF pumps Loma Campana output

Production ramp-up: YPF reports new output record in Loma Campana block

Argentina's YPF is seeing a ramp-up in production from the Loma Campana block in Neuquen province, where the state-led company is carrying out a high-intensity pilot project in partnership with Chevron in the promising Vaca Muerta shale.

YPF said on Monday it hit new record production of 24,000 barrels of oil equivalent per day, a 20% jump from the previous month.

The company has also installed its third of fourth processing units, locally built equipment with capacity for 12,000 barrels of liquids and 500,000 cubic meters of natural gas per day.

YPF anticipates that the shale cluster will ultimately see the installation of 15 similar units.

YPF, it said, aims to "position Argentina as the second country to bring these resources into production in the world" following the United States.

YPF shares popped 2.08% in New York trading on Monday morning.

The area has $1.6 billion investment planned for 2014, with 22 rigs working and 198 wells drilled.

Chevron, which signed a $1.24 billion joint-venture deal with YPF last July, announced a $1.6 billion expansion in April.

The exploration pair said they would drill 170 wells in the play this year, up from the previous target of 140.

Ali Moshiri, Chevron president for Latin America and Africa, spoke about the challenges of scaling up the shale play in Houston last month.

"As we see investment coming in, you’re going to see a tremendous increase in production in those basins," he told an audience of the IAPG trade group.

The company has previously projected production of 80,000 boepd by 2017.

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