Oil and Gas Opportunity in Argentina

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Oil and Gas Opportunity in Argentina

  1. 1. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.net Example of opportunity in Oil and Gas CompanyThe opportunity includes exploration, development, production and transportation in South areaof Argentina. There are 8 exploration blocks in our files, 7 in Santa Cruz Province and 1 inMendoza.Once the concession was made, there has been done geological and geophysical studies inorder to understand and define different plays, led and prospects in each block to estimates itoil and gas content. The blocks are:
  2. 2. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netBlock Characteristics Area Capacity Investment NPV (km2) (Mm3PE) (MMUSD) (MMUSD)A Near Petrobras Glenn Close gas and 4878 4000 6.93 238.4 condensated basin.B Near Fell from Geopark, who produces 3230 12971 10.84 658.2 the 50% of petroleum and 25% of gas of Chile.C Studies to be done in the area to 1217 6180 13.30 323.1 confirm hydrocarbon deposits.D Visible petroleum in Petrobras zone 4700 9871 15.95 325.4 near it.E Proven oil drillings. 6600 1616 10.45 13.6F Gas and liquid hydrocarbons between 3450 43 6.94 0.4 1100 and 2200, depth.G Gas detected, visible petroleum 5147 5290 16.79 317.0H Close to important gas and petroleum 173 2470 5.58 62.4 productors.Due to the location and the proximity to companies already exploiting blocks there, theexploration risk is low.Assumptions for the economic plan: Area 11 Area 22 Area 33 4 Petroleum Price (USD/bbl) 70 70 70 Gas Price (USD/MMBTU) 5 5 5 Operative Costs (USD/bbl) 12 15 12 Transportation cost (USD/bbl) 2 2 2 Income Tax (%) 2 2 2 Royalties (%) 19 19 12 Infrastructure Lifetime (years) 5 5 5 1 Includes A, B, D and G 2 Includes: C, E and F 3 Includes H 4 If the drilling are to be productive, the Price will be 80 USD/bbl
  3. 3. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netEstimated production:The investment is to be done in three periods, and the participation alternatives of concessionsowners are open: 1. Non initial payment – Agreement between parts The investor assumes the investment on the invoice delivery on his own risk, with an assurance in the licensee name. If the drilling are find to be successful, the investment is recovered as a part of the net results. If there is no success, the investor goes out of business. 2. Non initial payment – Agreement between parts Idem alternative 1 but the investor finances part of the development process. 3. Others
  4. 4. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netAn important fact of the project is the fact that the blocks are located near existing formationswith shale oil and gas with a high potential to be gas and oil producers. According to the U.S.Energy Information Administration, Argentina has 13.4 trillion cubic feet of possible natural gasresources and 774 trillion cubic feet of technically recoverable shale gas resources, being the11th and 3rd respectively in the world. As can be seen in the image below, the basins are locatedin the same area mentioned for the 8 blocks.

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