(Pampa Energía S.A., 5.Jun.2018) – Pampa Energía S.A. was granted a 35-year period extension to the operation of the El Mangrullo block for the development of unconventional gas (shale and tight), within the new exploitation license that Neuquén province granted to the Cutral Có and Plaza Huincul Inter-city Autonomous Body (‘ENIM’), which will come into force with the corresponding Provincial Order.
Currently, the El Mangrullo block is 100% developed by Pampa, is located in the mid-east of Neuquén province and accounts an area of 35,830 acres. Pampa produces natural gas from Mulichinco formation (compact sands or tight gas), with 41 productive wells and 97 million cubic feet per day. In consideration for the operation’s period extension, Pampa committed to disburse $205 million for a pilot investment plan during the next 5 years, with the objective to continue developing Mulichinco formation by drilling 15 wells, in addition to 1 well targeting Tordillo formation and explore the potential of Vaca Muerta formation (shale gas), by drilling 3 additional horizontal wells. Moreover, Pampa paid an exploitation bond and a contribution to corporate social responsibility that amounts to US$15.4 million.
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