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Sunday, 20 July, 2008, 22:40 GMT | more prices >>

Petrolifera steps into new Neuquen play

By Upstream staff

Canada’s Petrolifera Petroleum said it had won a new contract for the Puesto Morales Este concession on the Neuquen basin in Argentina’s Rio Negra province.

Calgary-based Petrolifera said it had been handed a one-year exploration licence on the 12.8 square kilometre concession. It said the concession abutted the south-western part of its Puesto Morales Block.

The company said the contract could potentially be converted into a 25-year production licence at a royalty rate of 24% in hydrocarbons were found in commercial quantities.

Petrolifera said it was committed to drilling three wells to a minimum depth of 1500 metres, undertaking 3D seismic work and training staff of the Rio Negro provincial oil company Edhipsa under the terms of the contract.

The company said it had already started drilling the X-1001 well on the block to a targeted depth of 1640 metres to test several prospects including the Sierras Blancas formation, which is productive in its Puesto Morales block wells.