Vaca Muerta y Exxon

ExxonMobil has had another success in Argentina's Neuquen Basin, saying Thursday it discovered shale O&G at a second well in the Vaca Muerta region, one of the world's largest shale resources.

The US company said the Invernada X-3 well is located roughly 12 miles from the first well where shale deposits were struck. In the first test, the well produced a flow rate of 448 bpd of oil and 1 MMcfd in the first well test.

Exxon commented, "Our second well is flowing at levels which position it as one of the best in the Vaca Muerta formation."

Exxon owns interests in roughly 900,000 acres in Vaca Muerta. Chevron and Shell are also developing shale fields in the formation, which is about the size of Belgium and holds at least 23 bbls, a 2012 survey by Ryder Scott referenced by Bloomberg said. By comparison, Vaca Muerta is nearly twice the size of Texas' Eagle Ford.

Right now, Argentina confronts a $7 billion energy deficit which President Cristina Fernandez's government hopes ongoing success in the Vaca Muerta formation will address.

Vaca Muerta holds the second-largest shale gas resources and fourth-largest shale oil resources in the world. However, analysts say financing is beyond the reach of state-controlled YPF and regional governments.

An economy that's largely state-controlled has harmed investor confidence in the country's energy sector. Add to that the recent oil price fall that now threatens investment plans for next year.

ExxonMobil holds and operates 85% of the La Invernada and Bajo del Choique blocks in the Vaca Muerta Shale formation. The remainder of two blocks is owned by Neuquen Gas and Oil.

Copiado de Exxon's Vaca Muerta Progress Is Great News For Struggling Argentina.