On 10 July 2018 the Neuquen provincial government awarded a 35 year unconventional production concession for the 867 sq km Sierra Chata Block, Neuquen Basin. Partners Pampa, ExxonMobil and Total will invest US$ 520 million in a five year unconventional gas project. They will spud 24 horizontal wells, 15 of which target the Vaca Muerta Shale and 9 the Mulichinco Formation. The expansion of facilities and a 3D seismic survey are also planned during the first five years. Interesting volumes of tight gas have been produced from the Mulichinco Formation and the Sierra Chata 130(h) horizontal well was fractured at 1,300m on its horizontal leg to stimulate tight gas objectives with successful results. Tight and shale gas projects are currently ongoing in the Pampa operated Parva Negra and El Mangrullo fields as well. The Rincon del Mangrullo and Rio Neuquen licenses, where YPF shares interest with the company, have been producing increasing volumes of gas. Pampa and ExxonMobil have also fracked the Parva Negra Este x-1001 (h) horizontal well in the Vaca Muerta on the Parva Negra Block. Pampa operates the Sierra Chata with 51%, ExxonMobil holds 45.55% and Total has a 3.45% interest in the block.<P />
Exxon 51%, Pampa 45.6%, Total 3.4% have been awarded 35-year rights to unconventional hydrocarbon exploitation for Sierra Chata block