(Adds details of find, quote from YPF, in paragraphs 3-4)
BUENOS AIRES May 21 Argentina's
state-controlled energy company YPF has made the first
shale oil and gas discovery in the Patagonian province of
Chubut, the company said in a statement on Wednesday.
The discovery, in the San Jorge basin, is located more than
1,000 km (600 miles) southeast of the Vaca Muerta mega shale
field in Neuquen Province.
It was the first discovery at El Trebol field in the D-129
shale formation in Chubut. The well that hit the find was 3,591
meters (11,781 feet) deep.
"The preliminary results are hopeful: daily production of 50
cubic meters of oil and water, and 12,000 cubic meters of gas,"
the company statement said.
Vaca Muerta, Spanish for "dead cow," field is thought to be
one of the world's biggest shale reserves and could double
Argentina's energy output within a decade.
The country needs foreign investment to develop the
formation and has signed one major Vaca Muerta deal, a $1.24
billion joint venture with U.S.-based Chevron Corp.
Earlier on Wednesday, U.S. energy major Exxon Mobil Corp
said it has made its first discovery of non-conventional
gas and crude oil in Vaca Muerta.
(Reporting by Alejandro Lifschitz; Writing by Hugh Bronstein;
Editing by Andrew Hay and Mohammad Zargham)