Repsol YPF (REPYY) (REP) - Repsol YPF is the leader in the Vaca Muerta Shale - Repsol YPF raises its hydrocarbons reserves and resources estimate in the Vaca Muerta play to 22.807 billion barrels of oil equivalent (Bboe) - Pepsol YPF has hired hydrocarbons reserves and resources Ryder Scott to carry out an external audit of its reserves, contingent resources and prospective resources of non-conventional hydrocarbons (shale oil and gas) in the Argentinean Vaca Muerta formation in the Neuquén province. The technical analysis is based on the criteria set out by Argentinean stock market regulator Comisión Nacional de Valores de Argentina and the United States´ Securities and Exchange Commission. At the same time, the evaluation of the contingent and prospective resources complies with the requirements of the Comisión Nacional de Valores de Argentina and the Society of Petroleum Engineers’ Petroleum Resources Management System.

The Vaca Muerta formation is estimated to cover an area of 30,000 km² (7.4 million acres) of which Repsol YPF has a net 12,000 km² (3 million acres). Preliminary results indicate that 77% of the area contains oil, with the rest containing dry and wet gas. The evaluation carried out by Ryder Scott covers a total area 8,071 km² (1,994,378 acres), of which Repsol YPF holds a net interest of 5,016 km² (1,239,407 acres) in the Neuquén area. The work carried out breaks down the total volumes of prospective resources, contingent resources, and proved, probable and possible reserves (definitions are detailed in Annex 4). The encouraging results obtained so far have prompted Repsol YPF to continue exploring the area to determine the play’s full extension and productivity in oil, gas and wet gas. The company aims to drill 20 wells in 2012, solely and jointly with several partners, to continue investigating prospective resources. With the current results, Argentina has the opportunity to reproduce the revolution in nonconventional hydrocarbons seen in the United States by developing the resources contained in the Vaca Muerta formation.

The development of the 1,100 km² explored so far by Repsol, containing gross contingent resources of 1,525 Bboe could make possible a 50% increase in Argentina’s current gas production. This would require a total investment by all stakeholders of $28 billion in the coming years to drill 2,000 producing wells which would require 60 drilling rigs more than currently operating in Argentina.
If the positive results of the exploratory wells underway are confirmed, the country’s gas output could rise 50%. This would require 1,000 wells to be drilled in a first phase, with an additional required investment of $14 billion, necessitating 40 drilling rigs more than Argentina currently has.

These 100 new rigs would more than double the current number of rigs in the Argentine, currently totalling 80.

If exploration proves successful in the Vaca Muerta formation and immediate intensive development began in the area, in 10 years its capacity could double Argentina’s existing gas and oil production. This would require a vast investing effort that would reach $ 25 billion per year in order to develop all the existing prospective resources.

A programme of such magnitude would require an important capital investment in Argentina from international markets; a powerful domestic industry (equipment, services, etc.) and competitive and highly technically qualified human resources since Argentina competes against other similar developments worldwide (USA, China, Australia, Eastern Europe, etc.).

 - Americas Petrogas (CVE:BOV) is very active in Argentina's Vaca Muerta Shale - Americas Petrogas (TSX-V:BOE) (“Americas Petrogas” or the “Company”) is pleased to announce the spudding of the Los Toldos Este well that targets the Vaca Muerta shale formation in the Los Toldos blocks (163,500 gross acres or 255 sections or 660 square kilometers) located in the Neuquen Basin of Argentina. The well has been spudded on Los Toldos II and is planned for drilling to a total depth of approximately 3250 metres with the principal target being the Vaca Muerta Shale along with other secondary traditional targets.

Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, “We are pleased about our joint venture with ExxonMobil and Gas y Petroleo del Neuquen and are excited to begin drilling the first of several wells that primarily target the rich, thick Vaca Muerta shale formation along with several stacked potential conventional formations.”

This is the first well within the farmout agreement between Americas Petrogas and ExxonMobil Exploration Argentina that was announced in August 2011.

The Los Toldos Este well will be a vertical pilot where the objective is to accumulate the maximum amount of information on the shale characteristics from logging, cores and samples to determine from subsequent analysis the optimum zones for testing and completion. Americas Petrogas is the operator of the well.