The oil companies YPF, controlled by the Argentine state, and Compañía General de Combustibles (CGC) have completed the drilling of the first exploratory well in Palermo Aike, the second-largest unconventional hydrocarbon reserve in the country, after Vaca Muerta.
According to the government of the province of Santa Cruz, the twelve fracture stages of Palermo Aike well 1 have been completed. Drilling began last September, reaching a vertical depth of approximately 3,500 meters and a horizontal branch of 1,000 meters.
"Palermo Aike is our great hope; we have the challenge of developing the largest energy potential in our history as a province with intelligence and efficiency," said the governor of Santa Cruz, Claudio Vidal.
The investment for this first exploratory well in Palermo Aike was around $28 million.
Covering an area of 12,600 square kilometers, Palermo Aike has estimated resources of 10 billion barrels of oil equivalent, representing one-third of Vaca Muerta, the colossal unconventional hydrocarbon formation in southwestern Argentina whose development began eleven years ago.
Due to its geological conditions, Palermo Aike is the formation most similar to Vaca Muerta, given its spatial extent, target depth (between 3,000 and 3,500 meters), marine origin, and potential.
If positive results are obtained, YPF and CGC will proceed with developing part of the area, investing in additional wells and associated facilities.
