YPF expects Vaca Muerta shale growth

BUENOS AIRES, March 7, 2018 – YPF anticipates that unconventional production from Vaca Muerta will increase by 35% in 2018, local media reported on Tuesday.

The NOC’s CFO Daniel Gonzalez said that falling production costs in the play were driving the optimistic expectations. However, overall production is likely to shrink 2-3% due to continued declines from mature conventional fields, he added during a conference call with investors.

The company plans to drill a total of 100 wells in 12 different areas of Vaca Muerta this year, targeting higher gas output. One of its most successful shale projects, El Orejano, was producing 5 mcm (177 mcf) of gas per day in February.

“YPF has a total acreage of close to 5.5 million acres, reaffirming the potential in Vaca Muerta is actually huge,” Gonzalez said.

The NOC expects to start up five new unconventionals projects this year, including one with Norway’s Statoil, with which YPF signed a co-operation agreement for joint energy projects yesterday.

Additionally, Gonzalez told investors that the company would be naming a new CEO before the April 27 shareholder’s meeting. Ricardo Darre, YPF’s former CEO, stepped down last August.

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