Argentina became our latest core area following two significant acquisitions in 2006 that substantially increased our presence in the country. Our oil and gas assets are located in the Neuquén, Cuyo and Austral basins of Argentina.
Argentina
Overview
Neuquén basin
In the Neuquén Basin, the most noteworthy developments are associated to projets under the Gas Plus program, which allows higher gas prices to help stimulate the exploration and development of natural gas resources in challenging geological scenarios.. Apache has four Gas Plus projects approved for development of tight sands and other unconventional gas resources as well as technical approval for two additional projects. The development will utilize an average of three rigs drilling 21 net wells. The first contract for 10 million cubic feet per day(MMcfd) at a gas price of $4.10 per million British thermal units (MMBtu) started in January 2010. The second is for 50 MMcfd at a gas price of $5.00 per MMBtu and is scheduled to begin in January 2011.
Cuyo basin
New cableless technology will be used to acquire approximately 505 square kilometers of new 3-D seismic mapping in Apache’s Mendoza Province blocks which together comprise 1.2 million net acres. Exploration drilling will follow based on the results of the seismic.
Austral basin, Tierra del Fuego (Argentina and Chile)
Apache’s holding in the Austral Basin spans both Argentina and Chile and comprises 1.55 million net acres. Three wells were drilled near the end of 2009 in Chile. One of them is now in the completion phase. In the Argentine portion of Tierra del Fuego, several projects are budgeted for 2010, including not only drilling but secondary recovery and an extensive recompletion campaign. Some exciting exploration opportunites are contingent to the extension of the concessions deadlines which are expected to be granted sometime this year.