(MENAFN- ProactiveInvestors) () has called its Bajo del Choique X-2 well "one of the best" in the Nequen Basin of Argentina with the well located near 's () Curamhuele block.
In an interview with Petrolnews.net Thomas of ExxonMobil said he sees a promising future for the Vaca Muerta shale in Argentina. He discussed the area in context of low oil prices and said that investments made in unconventional oil and gas are made with a long-term outlook and that current prices should not be a deterance.
Argentina is estimated to hold 27 billion barrels of technically recoverable oil and 802 trillion feet of technically recoverable shale gas much of it attributed to the prized Vaca Muerta shale formation in the Neuquen basin the fourth largest shale oil deposit in the world.
The country is becoming more investment-friendly with a new hydrocarbon law approved last month to boost oil investment in the famous Vaca Muerta shale spelling out greater transparency and improved fiscal terms in Argentina.
noted that the Bajo del Choique X-2 well tested 770 barrels per day from the Vaca Muerta the highest unconventional oil production rate test in Argentina which offsets Madalena's Cuamhuele block.
Madalena has a total of 14 concessions across Argentina over 1 million net acres of land with a major foothold in the area dominated by industry majors such as YPF Total Exxon and several others.
Exxon's bullish outlook on Argentina as well as improving macro factors could influence shares of Madalena which is well positioned for the anticipated rebound in the Argentina energy market.
Shares of Madalena were trading at 33.5 Canadian cents on Tuesday.
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