PentaNova Energy has reached an agreement with YPF to jointly develop the Llancanelo heavy oil field in Argentina.
Simultaneously, PentaNova also completed negotiations to move to 50% working interest in the field.
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The company currently holds a 29% working interest in the field through its fully owned subsidiary Alianza Petrolera.
As part of the negotiations, the company has finalised the acquisition of Roch’s 10% stake and an additional 11% interest in the field through a farm-in agreement with YPF.
PentaNova Energy chairman and executive director Serafino Iacono said: “The decision of YPF, Argentina’s largest energy producer, to deepen its partnership with PentaNova is a significant advancement for our company’s strategic plan to become Latin America’s next significant oil and gas company.
“We are also pleased that as we develop one of Argentina’s largest heavy oil fields, PentaNova continues to generate revenue and execute plans to reactivate wells on KM8 enabling that field to move back into active development.”
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By GlobalDataUnder the agreement with YPF, the companies will work towards completing a joint planning and evaluation programme in six months to complete the full development plan on the block.
Furthermore, the parties will also develop the technical plans to increase production from the block, which currently produces 1,277boepd.
Located to the north of the Neuquén Basin in the province of Mendoza, the Llancanelo field was discovered by YPF in 1937.
At present, the company is working in partnership with YPF to further evaluate the field, optimise the existing operations, and evaluate technologies to enhance the productivity of wells.
The initiatives are expected to lead to a new development drilling programme next year.
A coil tubing unit is expected to be mobilised into the field to complete workover and testing activities.
