UPDATE: Americas Petrogas Up 6%, Just Shy of Yr Highs as Finds More Oil and Increases Production in Argentina
Americas Petrogas (BOE.V) is up more than 6% and has touched just shy of a year high $2.99 after it announced interim results of its ongoing drilling program targeting the Eastern portion of the Neuquen Basin of Argentina.
The first well of this drilling program that was completed on Medanito Sur block is the El Jabali a-2 well (EJ.a-2). The well has made a significant discovery of light (34 degrees API) crude oil from the sandstone formation above the Pre Cuyo in a 10 metre interval at a depth of 1036 metres. The well test resulted in 99% oil, flowing on a 10 mm choke with 300 psi wellhead pressure. After completion tests, the well was tied in to production facilities, put on production and is currently producing approximately 700 barrels of oil per day.
This latest discovery confirms the growing oil potential of the Medanito Sur block and the geological model of the western part of the block.
The Company is continuing to drill and complete wells on the two target blocks, Medanito Sur and Rinconada Norte, for this drilling campaign.
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