In late-February 2018, local reports indicated that the government of Santa Cruz Province has awarded 35-year unconventional exploitation concessions to Cia General de Combustibles (CGC) for two of its producing blocks, namely the El Cerrito and Campo Indio Este. The company plans to invest USD 200 million in developing the tight gas reservoir of Tertiary-age Magallanes Formation with 34 wells planned. In addition, CGC will also carry out an exploration program that includes the acquisition of 2,000 sq km of 3D seismic and the drilling of ten new exploration wells. Â  The El Cerrito and Campo Indio Este blocks are originally part of CGCâs Santa Cruz I concession in onshore Austral Basin covering 42 sq km and 33 sq km of areas, respectively. In November 2017, the Argentinean Government expanded the subsidies in its âGas Planâ to also cover unconventional gas production from the Austral Basin.
CGC was awarded Campo Indio Este-El Cerrito block.