According to reports in late-June 2019, state company Integracion Energetica Argentina (IEASA) has awarded the Aguada del Chanar block to state company YPF following the latterâs highest bid in the licensing round called ADCH 01/2019 in mid-June 2019. YPF emerged as the winner after the company submitted an offer of USD 95.6 million, significantly more than twice of any of the other offers received for the block such as Pan American Energy with USD 45 million, Tecpetrol with 40.1 million, and Vista Oil & Gas with USD 8.1 million. It was said that IEASA and YPF will enter into the definitive agreements following the assignment of the block, where YPF is expected to become the operator with 100% equity. Most recently a 35-year permit for unconventional exploitation was granted to IEASA for Aguada del Chanar in October 2018. The unconventional permit was awarded with the expected commitment of a USD 10 million work program that includes an acquisition of 80 sq km of 3D seismic and an exploration well workover in the tight reservoirs of Punta Rosada-Lajas formations by October 2020.  Aguada del Chanar block covers 57 sq km of land in the Neuquen Embayment part of Neuquen Basin. The block is situated directly next to YPFâs own La Amarga Chica block on the southwestern side where the operator and Malaysian state partner Petronas recently agreed to enter the development phase on their Vaca Muerta shale oil project in late-2018. It is also situated adjacent to Wintershallâs Aguada Federal block on the western side where the operator has been targeting resources in the Vaca Muerta Formation shale.  IEASA, formerly ENARSA, originally joined Neuquen provincial company GyP Neuquen as a 50% stakeholder in the Aguada del Chanar block in February 2010 before receiving a 25-year conventional exploitation permit in August 2012 with the option of a 10-year extension.  Background Information    Fields in Auguada del Chanar block have produced over 78 Mbo and 3.3 Bscfg as of January 2019, with 29 Mbo and 33 MMscfg from the Vaca Muerta Formation.
YPF (100%) was awarded the Aguada del Chanar block  following the latterâs highest bid in the licensing round called ADCH 01/2019 in mid-June 2019.