Chile's state-owned oil and gas company ENAP successfully put into production the well Paraguaya 2 at Intracampos Block (100% ENAP) in Tierra del Fuego, with an initial flow rate of 160 cubic meters per day of oil, equivalent to 1,006 barrels.
Paraguaya 2 is the first well coming into production at the Intracampos Block from a new strata-graphic level located below Springhill, the traditional producing formation of the Magallanes Basin. Another well, Paraguaya 3 is expected to be tested, which if successful will mean the consolidation of new oil wells in the Tierra del Fuego area.
With the exploitation of this well, ENAP Magallanes achieves a 22% increase in its daily oil production, which is a significant advance in the oil production goal that the company has set for 2014.
This year ENAP Magallanes has a drilling program of 32 wells (21 oil wells and 11 gas wells) demanding an investment of 150 million dollars in the region. Last year the investment was 125 million dollars.
In related news ENAP announced a profit of 134 million dollars in 2013, a great advance from the 319 million loss in 2012. This change in results is explained by a substantial improvement in gross profit margins that reached 573 million dollars in 2013.
This turnaround is mainly due to operational improvements and management in both Refining and Commercialization (415 million) and Exploration and Production (153 million).
ENAP's foreign branch also had a good year because of higher revenue in Argentine assets as domestic prices of hydrocarbons were de-frozen and raised. Better performance in Egypt as a result of the successful exploration campaign in East Ras Qattara Asset in 2013, with increases of 50% in stocks and 33% in production levels as compared to 2012, and finally ENAP also received compensation for the production and purchase of natural gas in Magallanes granted by the State of Chile as from 2013, equivalent to 55 million dollars.