According to reports in early-December 2018, Formosa Province government has assigned operatorship and 100% holding interest of the Palmar Largo block in the Noroeste Basin to Madalena Energy. Investment commitment was reported to be USD 2 million for workovers in two wells within the next two years, with the possibility of a one year extension.  The Palmar Largo block covers 217 sq km of land in the Pirity Sub-basin part of the Noroeste Basin, on the border between the provinces of Formosa and Salta. The company is already the operator in two adjacent blocks, El Chivil and Surubi, on the Formosa Province side.  Madalena previously held 14% non-operating equity in the block, joining partners Cia General de Combustibles (CGC) with 17.85%, state company YPF with 30%, and High Luck Group (subsidiary of Hong Kong firm New Times Energy) as the operator with 38.15% stake. The area was transferred to the provincial oil and gas company of Formosa, REFSA, in November 2018, following the expiration of the concession in December 2017.Â  Â   Background Information  Fields in Palmar Largo block have produced over 48.3 MMbo and 44.4 Bscfg as of October 2018, primarily from Yacoraite (Maastrichtian-Palecene) limestone and calcareous sands, and Palmar Largo fractured Volcanics (Campanian) reservoirs.
Formosa Province government has assigned operatorship and 100% holding interest of the Palmar Largo (217kmÂ²) block to Madalena Energy. 