Pan American Energy LLC has started a horizontal multifrac reentry program in the Vaca Muerta shale formation at Coiron Amargo Sur Este (CASE) in Argentina.
The firm recently mobilized a drilling rig to the CAS.x-15 (ST) location to reenter the well. The rig will drill horizontally for 1,500 m and target the Vaca Muerta unconventional oil resource play at a vertical depth of 3,200 m.
After drilling, the rig will be demobilized and preparations will begin for the mobilization of supplies, services, and equipment to complete the well with 19 stages of hydraulic fracs.
Pan American is operator of CASE with 55% working interest. Calgary-based Madalena Energy Inc. and Gas y Petroleo del Neuquen SA, the provincial oil and gas company in Neuquen province, hold 35% and 10% working interests, respectively.
Madalena late last year agreed to transfer operatorship and 55% interest to Pan American for $10 million in cash and a limited recourse loan of up to $40 million to be drawn-down as required to fund certain capital expenditures. Madalena also will receive $5.6 million in carried capital costs through the current 2-well reentry work program at CASE.