By J. Brock (FINN)
Any good news about oil and gas discoveries in the Patagonian area of Argentina and Chile has potentially good results for the Falklands’ Oil industry in that reserves of hydrocarbons have no respect for political borders.
Argentina's State Oil Company, YPF, announced on Sunday that it discovered oil and gas in the Patagonia region located in the Santa Cruz province.
Shared by Argentina and Chile, Patagonia comprises the southern region of the Andes as well as the steppes, deserts and grasslands east of this southern area of the Andes including the provinces of Santa Cruz, Neuquén, Río Negro and Chubut, as well as the eastern portion of the Tierra del Fuego archipelago and the southernmost department of Buenos Aires.
The discovery holds the potential to produce 200,000 cubic meters of gas and 370 barrels of oil per day, YPF said in a statement. The well was drilled to a total depth of 9,087 feet.
A welcome bit of news, the discovery is expected to help Argentina out of default. Mainly focused on developing shale oil and gas formations in the Vaca Muerta region, YPF also operates in Patagonia and is struggling to entice investors that thus far have been reluctant to do business in Argentina.