Andes Energia has seen a successful intervention operation on a well in the Vaca Formation in Argentina.
The VG x-1 well on the Vega Grande oilfield in the Neuqen basin is producing oil at a rate of 80 barrels per day, without being stimulated thought hydraulic fracturing.
Operations consisted of an intervention with a pressure draw-down and build-up tests performed in the interval of between 2612 and 2617 metres below ground level.
The Company said it will now perform an extended test, installing a sucker rod pump and using existing Andes facilities to evacuate the oil.
Alejandro Jotayan, chief executive, said: “This production test in Vaca Muerta is a meaningful advance in the development of our shale acreage.
“We are already producing from shale without needing to frack, reducing costs and the necessary break-even oil price.”
The VG x-1 well is located in the Vega Grande licence, which is 100% owned and operated by Andes. The licence covers a total area of 72,000 acres and is located in the north of the Vaca Muerta.