PetrelEnergy, which holds a 51% stake in Schuepbach, said preliminary analysisof the Cerro Padilla E-1 core hole samples confirmed oil generation inthe Piedra Sola concession and also, very likely, thedeeper Salto concession to the north-west.
CerroPadilla E-1 intersected 30 metres of thick Permian shale with totalorganic content up to 4.2% along with high amorphous kerogen contentand thermal maturity.
The shale was thought to be the Mangrullo shale which Petrel saidwas of particular interest as it was believed to be confined toeastern Uruguay and of insufficient maturity for oil generation.
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