By staff at Upstreamonline.comCalgary-based Antrim Energy has signed an agreement to acquire a 50.1% interest in the Cerro los Leones exploration concession in Argentina’s Neuquen basin.
Antrim will also assume operatorship of the 307,215 acre concession, situated in the northern portion of the Neuquen basin, in the province of Mendoza.
Antrim said it acquired its interest in the concession from a private Argentine company and the terms of the acquisition included the re-imbursement of $1 million of exploration and permit expenses ($500,000 net to Antrim), and for the payment to the vendor of a 2.5% gross overriding royalty.
Under the acquistion agreement for the concession Antrim will have to acquire seismic data and drill up to five wells during a three year exploration period.
Antrim said it was currently working to obtain the necessary environmental approvals to shoot a 3D seismic program in the first half of next year, which will be followed by the drilling of two exploration wells later in the year.
The company said existing 2D seismic had already identified a number of lower Tertiary and Cretaceous structural leads at drilling depths of between 1500 and 2500 metres.
It added 17 wells had previously been drilled on the concession, 16 of which reported oil & gas shows, indicating the presence of a reservoir, source and seal rock at multiple horizons.
Antrim chief executive Stephen Greer said the Cerro los Leones concession represented a "unique opportunity to ..Read full article
acquire prospective acreage in a major oil producing basin at low acquisition cost."
"The concession is of particular interest given that it has remained fallow for a number of years, has never had 3D seismic shot and is adjacent to and on trend with several oil producing fields,” he added.
Antrim said it would also apply for inclusion in Argentina’s Gas and Oil Plus incentive programs, which provide for higher prices than other Argentine production earns.
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