Pan American Energy announced the discovery of shale gas in Cerro Dragón, province of Chubut. The initial investment will be 250 million dollars and is expected to create new jobs.
The discovery reactivates the Gulf of San Jorge basin and positions southern Argentina as a key area for unconventional energy production.
What did they find in Cerro Dragón?
The company confirmed that it is unconventional gas housed in shale formations, similar to Vaca Muerta. This type of resource requires special extraction techniques like fracking.
Pan American Energy has been operating in the area for decades. The discovery gives a twist to a region that seemed depleted in terms of conventional gas.
Million-dollar investment
The 250 million dollar investment will be allocated to the opening of five wells. This will be the first step for deeper exploration throughout the Gulf of San Jorge basin.
According to initial estimates, the province of Chubut will receive nine million dollars in royalties during the first stage of the project.
