CGC hits gas in Argentina

Argentina

BUENOS AIRES, September 30, 2015 – Argentine energy company Compañia General de Combustibles (CGC) announced a discovery of a gas play in the Austral Basin in the southern province of Santa Cruz.

“The exploratory well Morena Sur has tested an initial rate of approximately 100,000 cubic meters per day,” CGC said in a Wednesday press release. “It is estimated that the new discovery could increase the gas reserves in the Austral basin by an extra 1.13 bcm-1.42 bcm [40bcf-50bcf].”

CGC acquired the gasfield licence along with 25 others in the Santa Cruz province from Brazilian majority state-owned Petrobras in June for $101 million. CGC drills and produces in Argentina, Ecuador, Guatemala and Venezuela.

As of 2015, 275 shale wells have been drilled in Argentina and the country’s reserves remain mostly unexplored. It is one of only four countries in the world currently producing commercial amounts of shale gas.

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