Roping in acreage: Apco in Argentine farm-in.
Apco to farm in to Nequen block
Oklahoma explorer Apco Oil and Gas International has struck a deal with Toronto-listed Madalena Ventures and Argentine player Roch to farm in to a block in the Nequen basin in Argentina.
Apco can earn up to a 45% participation interest in the Coiron Amargo block if it completes a two-stage, four-well drilling programme over the next two years.
The Coiron Amargo block covers about 100,000 gross acres.
State-run Gas y Petroleo de Neuquen has approved Apco's participation.
Upon completion of the first two wells this year, Apco will earn a 22.5% interest, with the remaining interest coming after finishing the final two wells next year.
The company hopes to start drilling those by the second half of the year.
Apco already holds stakes in the Entre Lomas, Bajada del Palo and Agua Amarga areas in the Nequen area.
The latest farm-in will bring Apco’s leasehold to about 490,000 gross acres, the company said in a release.
"Our evaluation indicates that the subsurface geology is quite similar to that found in the southeast part of our Entre Lomas concession and to what we have encountered since 2007 in the Bajada del Palo and Agua Amarga blocks," Apco exec Thomas Bueno said in a release.
"In Coiron Amargo, we hope to apply the same geologic model that we have successfully used to drill exploration wells over the last few years in our adjacent blocks."
The Coiron Amargo block is operated by Roch under a three-year exploration period expiring in November, but the licence can be converted to a 25-year exploitation concession with commercial discoveries.
Apco said the partners plan to ask for an extension of the exploration period on the Corion Amargo block so there is time for the second phase of drilling.