Hydraulic Fracturing of 4 Wells and 3 Multipoles in Arenal Block

Description: The present Project consists in carrying out the process of "hydraulic fracturing" to 4 wells and 3 multipoles located in the Arenal Block. These correspond to the locations of the PAD Punta Piedra Oeste ZG-1 (4 wells), PAD Cortado Creek ZG-1 (7 wells), PAD Estancia Rita ZG-1 (6 wells) and the monopozos Lautaro Sur ZG-A, Barwick ZG-1, Huiro 1 (Ex B) and Progress ZG-1. It is important to indicate that a PAD corresponds to an ironing of 2.33 ha that allows the drilling of more than one well, making the production process more efficient. A Monopozo is an ironed of 1.44 ha where only one well is located. The process of hydraulic fracturing is a technique of stimulation of the well, through the sustained injection of a fluid at such a pressure, that causes the rupture of the reservoir rock (increase of the contact area of the reservoir with the well), with the purpose of creating new channels or connecting existing flow channels, increasing the flow rate of the well and thereby its productivity. The wells that will undergo this process have the production objective of the Glauconitic Formation. This is located approximately between 1,500 and 3,000 mbnmm (meters below mean sea level) of depth. This formation has shown through previous studies, that there is a reservoir of confined hydrocarbons, which has not been able to be extracted due to the low permeability of the rock. The permeability of the rock in conventional hydrocarbon reservoirs (as in the case of Springhill in Magallanes), is approximately 5 to 1,500 millidarcy, however, in non-conventional reservoirs, the permeability of the rock fluctuates between 0.001 to 0.04 milidarcy . Due to the low permeability, it is necessary to perform the fracture operation, without which extraction of the confined hydrocarbons would not be possible. The wells to be fractured present RCA favorable for the drilling processes corresponding to RCA N ° 201/2015 for the Punta Piedra Oeste ZG-1, Cortado Creek ZG-1, Estancia Rita ZG-1, Barwick ZG-1 and Progreso ZG- wells. 1, RCA No. 147/2012 for the Lautaro Sur ZG-A and RCA No. 035/2015 well for the Huiro 1 well (Ex B). Additionally, it is important to mention that the Monopozos Punta Piedra Oeste ZG-1, Cortado Creek ZG-1 and Estancia Rita ZG-1, have a favorable RCA for the fracturing processes corresponding to the RCA N ° 102/2016. The results of drilling and fracturing of these wells established favorable exploratory results to extend from monopozos to multipozos (PAD) within the guidelines established in the RCA N ° 201/2015. In this context, the present Declaration of Environmental Impact is oriented to the fracturing of the multipozos of the ironing and will not fracture again the monopozo Punta Piedra West ZG-1, Cortado Creek ZG-1 and Estancia Rita ZG-1. The objective of the fracture is oriented to the PAD Punta Piedra West ZG-1, PAD Cortado Creek ZG-1 and PAD Estancia Rita ZG-1 wells with four (4), seven (7) and six (6) wells respectively. Objective The purpose of this Project is to significantly increase the productivity of hydrocarbons from 4 wells and 3 multi-wells, located within the Arenal block, through the process of hydraulic fracturing in the Glauconitic Formation, a process that will increase the contact area of the reservoir with the near the wells, thus achieving the extraction of the hydrocarbons contained in the deposit at profitable flows.