The company said its M.X-1015 well encountered the gas at 1300 metres in the El Mangrullo concession, but offered few specifics to indicate the magnitude of the find.

"It is not yet possible to estimate the reserves associated with this discovery which probably will require new studies and drilling for its delineation," operator Petrobras said in a securities filing.

The Agrio is a proven formation but has also been targeted for unconventional potential alongside the better-known Vaca Muerta and Los Molles shales.

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