ExxonMobil to explore for Shale Gas in Argentina’s Neuquen province

ExxonMobil plans to explore for Shale gas in Argentina following the award of two blocks in the western Neuquen province. ExxonMobil spokesman Patrick McGinn told Dow Jones news service that the exploration agreements were signed in December 2010.
YPF, Argentina’s state oil company, will be ExxonMobil’s partner in the Loma del Molle and Pampa de las Yeguas I blocks. The awards were the result of a tender round submission launched in 2010 by Gas & Petroleo de Neuquen, the provincial oil and gas company. On Dec. 7, YPF announced the discovery of 4.5 Tcf of proven Shale gas reserves in the Patagonia area of the Neuquen Basin. The Argentinean government has suggested that the Neuquen Basin may hold 257 Tcf of Shale Gas reserves.
ExxonMobil’s entry into Argentina’s shale play follows its acquisition of shale operator XTO in 2009 and Shale exploration activities in Canada, Germany, Hungary and Poland.