Exxon makes first Vaca Muerta shale discovery


Exxon Mobil (XOM +0.6%) reports its first discovery from Argentina's Vaca Muerta shale formation.

XOM says it is testing the Bajo del Choique X-2 well to evaluate the discovery, but initial results produced an average flow rate of 770 bbl/day of oil.

XOM's Argentine subsidiary holds stakes in ~900K acres of unconventional shale oil and gas plays in the energy-rich province of Neuquén.

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Comments (6)
  • User 353732
    , contributor
    Comments (5152) | Send Message
     
    There is no doubt that the Vaca Muerta shale play is very promising and developing it would create major economic benefits. However, Argentina does not keep its word on contracts nor can it legal and political system be trusted to deal either rationally or fairly with foreign risk capital.

     

    Neither XOM nor CVX will expose substantial capital to developing Vaca Muerta: a minor disappointment for the companies but a self inflicted tragedy for Argentina.
    21 May 2014, 12:33 PM Reply Like
  • evan.prospect
    , contributor
    Comments (704) | Send Message
     
    Totally agree and the sooner Cristina Fernandez is out of office, the better. Juan Peron and his disastrous legacy continue to plague Argentina...sad for a country that was so wealthy a century ago.
    21 May 2014, 01:04 PM Reply Like
  • xomstock
    , contributor
    Comments (439) | Send Message
     
    How far behind Argentina are we?
    21 May 2014, 03:43 PM Reply Like
  • chillywilly69
    , contributor
    Comments (36) | Send Message
     
    I hope XOM does not put too much into Argentina, as it will be confiscated one day likely soon. Much like in Venezuela or Cuba and the like.
    21 May 2014, 04:23 PM Reply Like
  • NoVABIll
    , contributor
    Comments (41) | Send Message
     
    Heard a very senior XOM manager say they pulled out of Argentina due to the unstable government environment. Even moved a business support center to Brazil a few years ago.
    Notice this is an indigenous XOM subsidiary, not the parent.

     

    Sadly, Argentina has been plagued for 60 years with poor governments, narcissistic leaders and a self-destructive out-sized ego.
    21 May 2014, 08:02 PM Reply Like
  • alex22288
    , contributor
    Comments (48) | Send Message
     
    with food prices going up we should start eating tar sands
    28 May 2014, 10:05 AM Reply Like
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