On 12 December 2017, YPF disclosed that it would carry out a long-term testing program to try and establish commercial production on four potential discovery wells on the San Sebastian Block in the Magallanes Basin. YPF has filed a petition with Chile's Environmental Assessment Service (SEA) for the testing of the wells known as Carpintero, Cisne Sur, Cisne Oeste and Gaviota Sur. The tests have been approved by the agency and are expected to last from one to two months for each of the wells. It is estimated that if the four discoveries are placed on production that they could produce up to 2327 bo/d with 8.5 MMcfg/d in associated gas also. This would be the case if the tests are positive and YPF moves forward with production plans, a scenario which according to the most recent YPF studies is plausible. The contract began on 4 January 2013 when YPF farmed in to the block for a 40% share and Wintershall farmed in for 10% while Chilean national oil company, ENAP held the remaining 50%. It is a special oil exploration contract (CEOP) used when foreign companies acquire license equity and explore for hydrocarbons in Chile. YPF and Wintershall by the terms of the farmin were required to supply 100% of the investment in the first exploration period of the contract. In December 2015, the contract moved to the second period of exploration and Wintershall and ENAP decided not to move to that period, so YPF continued with the contract at 100%. The second period commitment for YPF included the drilling of one exploration well on the block and the completion of two previous wells drilled in 2015. Between December 2014 and early 2017, eight wells were drilled in the San Sebastian Block and four of these had significant oil shows. In the event that crude oil is produced in the extended testing, it will be transported to ENAP facilities in Cullen where a storage space has been allocated. <P />
Chile, San Sebastian