Americas Petrogas Inc. has completed the first well, ECE.a-5, of its four-well drilling program on Medanito Sur. The well was completed in the Cuyo Formation without hydraulic stimulation. During the initial test the well produced, by natural free flow, an estimated rate of 232 bopd of 33 degree API light crude on a 2-inch open choke with no wellhead pressure. No decline was observed during the 24-hour test. The flow test result was the initial well productivity test and is not necessarily indicative of long-term production potential or capability.
After the initial test, the well was immediately equipped with a beam pumping unit and permanently tied into Company-owned production facilities. Production was started with the well on pumping and intermittent natural flow. During the initial days after being permanently tied in, the well produced 300 bopd, 100% crude, without rate decline. The ECE.a-5 is an appraisal well located on the El Calden Este area of Medanito Sur, which is a conventional block located in the Eastern part of the Neuquen Basin in Argentina. No pressure transient analysis or well test interpretation has been carried out on this well.