document: On 20 August 2018 it was reported that the Neuquen provincial government will award a 35 year production concession to partners Pluspetrol and YPF subsidiary YSur on the 230 sq km La Calera Block, Neuquen Basin. The partners are committed to an initial 2 year pilot plan including the drilling of 10 wells and US$ 180 million investment. If the plan is successful, the companies will start a contingent plan for 2019-2021 to drill 35 horizontal wells and to construct production infrastructure including a pipeline network and a 70 MMcfg/d gas treatment plant. This second stage would include an US$ 450 million investment. The total development plan is expected to include up to 207 wells with a US$ 2.21 billion investment. In the meantime, the Energy and Mining Ministry (MINEM) recently announced limits to the application of Resolution 46 which grants special pricing for new unconventional gas projects. It is not clear if this project will be included or not in this regime. Recently the partners applied for inclusion in this Plan Gas promotional pricing plan. This 230 sq km block is located between the Loma Campana and Aguada Pichana Este blocks within the Vaca Muerta gas window sweet spot. Two drilling rigs are expected to be used for the project. In late December 2017, the operator completed a 13 stage frack and tested gas on the La Calera x-3001(h) horizontal wildcat. Tests were conducted over the 3,184-4,612m gross interval. The well targeted the Vaca Muerta Shale.<P /><P />
summary: Pluspetrol and YPF have been awarded explo rights to the 230 sq km La Calera Block,