Argentina-focused Andes (LON:AEN) has unveiled some encouraging results from its latest drilling campaign on Chachahuen block in the Province of Mendoza which confirm the “large-scale potential” of the area.
In total four exploratory wells were completed one found oil, two found gas, while the final hole, Cerro Morado Este x-1, was plugged and abandoned.
Cerro Redondo x-1 tapped into six metres net oil pay in the sandstone of the Rayoso formation, while gas was hit by La Orilla x-1, which tested the deeper-lying Lotena horizon.
Remanso del Colorado x-1 went into the Cuyo Group formation where gas was also encountered.
Drilling on fifth well, in partnership with the state-owned oil company YPF, began on July 5 will probe the Centenario formation. It is currently at the completion stage.
Chairman Nicolas Mallo Huergo sid: "The new oil discovery at the CoRe x-1, untapped a new reservoir to be appraised and developed, in the same way the presence of gas identified in the deeper horizons of wells LaO x-1 and Re Co x-1 opens a new exploratory frontier, which reaffirms the large scale hydrocarbon potential of Chachahuen."