MADRID | Repsol has found in Argentina new reserves equivalent to YPF’s. The site is located in Argentina’s Neuquén province in the region known as Vaca Muerta, with a total area of 30,000 square kms, of which Repsol YPF has 12,000 square kms. The company has confirmed the existence of large volumes of unconventional oil in the area of Loma La Lata. These resources would transform the energy potential of Argentina and the Southern Cone, as it is one of the largest accumulations of unconventional resources in the world.
The results of the exploration in an initial area of 428 square kms show that there are recoverable resources equivalent to 927 million barrels, of which 741 million are oil and the remainder is gas. This volume is similar to the current proven reserves of YPF. New explorations that are being carried out in another area of 502 square kms are expected to provide large volumes of high quality oil, too.
Regarding the valuation of these reserves, the costs of E&P would be different to the costs of conventional oil and, therefore, the value of these reserves would be lower than that of conventional reserves. Nonetheless, this is good news for Repsol that strengthen its exploratory ability and reserve base, which will provide further growth opportunities.
At 11.30 am today, Repsol shares rose 1.1%, in line with the rest of the Ibex 35.