Three of the wells were drilled to evaluate the extension of the development area of El Caldén Este in the Cuyo Formation and the fourth well was drilled to evaluate the northern branch of El Jabalí field in the Tordillo Formation. All four wells are currently on production equipped with beam pumping units and permanently tied into Company-owned production facilities.
Since all four new wells have been on production, average gross oil production at Medanito Sur, operated by Americas Petrogas, has been approximately 1,800 bopd (approximately 1,440 bopd net to the Company), representing a net increase of nearly 100% over the Q3 2014 average net oil production at Medanito Sur.
The Argentina regulators have set the domestic January 2015 oil price at US$77 per barrel for Medanito light crude oil, which is the type of oil produced from the Company’s Medanito Sur block and Rinconada Norte block.
