- YPF (YPF +0.6%) has carried out a successful production test on an oil discovery in Argentina’s Vaca Muerta shale play, according to partner Andes Energia.
- Initial tests showed the well naturally flowed oil at an average rate of 90 bbl/day, enough for Andes Energia to say it is very encouraged by the results of the play.
- The Las Varillas exploratory well is a vertical well, unlike the majority of shale wells internationally which are typically horizontal, so it is cheaper to both drill and complete; the project also benefits from comparatively high domestic oil prices, as in Argentina there is a regulated price of $77/bbl.