Pan American Energy (PAE) y Crown Point Energía S.A. reached an agreement for the transfer of PAE’s rights over the areas Nailed Stone y Koliel Kaike, in the province of Holy Cross, both oil and natural gas producers.
The transfer was approved by the provincial authorities, so the transition process will begin shortly in order to ensure the operational continuity of said assets.
The transaction expands Crown Point Energía’s portfolio in Argentina, at the same time becoming an operator of oil assets in the province of Santa Cruz.
For its part, PAE will focus on giving impetus to the other areas operated by the company in the province, maintaining its activity in Santa Cruz Dragon Hill and moving forward with the exploration of the neighboring area Cerón Chico Plateauboth located in the north of Santa Cruz.
Crown Point Energía announced an investment commitment of USD 41.5 million until 2026 in the Piedra Clavada and Koluel Kaike areas, a figure that could reach USD 90.8 million if a contingent work program is implemented that includes the drilling of 10 wells. additional activities, among other activities. Likewise, the company also committed, from 2027 onwards, an investment of USD 20 million and the drilling of six new wells, to which a complementary plan could be added that would involve almost USD 20 million more, with the drilling of six additional wells.
Pan American Energy, for its part, is executing an investment plan in the province that will reach approximately USD 90 million in 2024, which includes the drilling of 22 development wells and a plan of 25 well interventions in the Cerro Dragón Santa Cruz area and an exploratory well in the Mesta Cerón Chico area. If this exploratory well is successful, a potential work plan of 35 production and injection wells in said area could be developed in the coming years. It should be noted that between 2005 and 2023 PAE invested more than USD 1.4 billion in Santa Cruz.
The investments of oil companies in Santa Cruz seek to reverse a decreasing trend in production levels that has been affecting activity for several years. According to data published by the Secretary of Energy of the Nationin the first seven months of 2024, 2,232,446 m3 of crude oil were extracted in that province, which implies a drop of 1.02% compared to the same period of the previous year.
The retraction was not too pronounced, but it continued a strong negative streak. If the historical data of the province is analyzed, this year’s production is the lowest in the last decade and in terms of volume it is practically half the level that was extracted year ago. In 2009, for example, 4,251,085 m3 of crude oil were extracted in Santa Cruz lands.
The same thing happens in the gas extraction branch. Between January and August of this year, 2,158 million m3 of gas were extracted in Santa Cruz, a figure that represents a drop of 3.09% compared to the same period last year, when 2,227,407 m3 of this hydrocarbon were produced.
Regarding PAE specifically, the official numbers show that it is going against the trend in the oil sector. In crude oil, it registered a year-on-year improvement of 2.49% in production levels during the first seven months of the year.
In gas, however, PAE follows the general trend. In the first eight months of 2024, it produced 14.9% less than in the same period of 2023, according to official data.