Argenta discovers oil in Argentina

Argenta Oil & Gas Inc. provides initial results of its first exploration well on its 100% owned Loma El Divisadero property in the Neuquen Basin, Argentina.

The LEDO x-2 well was drilled to a total depth of 5,294 feet and 7 inch casing was run and cemented at 4,694 feet. The well tested 19 degrees API gravity oil from the Chorreado Member (3,451 feet) before any stimulation. The Chorreado Member (Huitrin Formation) appears in this well with 197 feet of gross thickness in three different packages of fine to very fine sandstone, log porosities average 18%, with resistivities suggesting high oil saturation.

The Company is currently evaluating the size of the hydrocarbon pool by reviewing the recently shot 3D seismic and examining a number of options to improve production rates, including a sand frac. It is common local practice by offset operators to frac this type of formation in order to boost production rates.