Exxon gets green light for Vaca Muerta shale development

Dec 15 2015, 14:11 ET | About: Exxon Mobil Corporation (XOM) | By: Carl Surran, SA News Editor 

Exxon Mobil's (XOM +4.3%) plan to spend ~$229M to develop the Vaca Muerta shale play in Argentina is approved by the Neuquen provincial government, which could lead to full scale development on XOM’s holdings in the Neuquen basin.

XOM plans to drill five horizontal wells with laterals of up to 2,500 meters (8,202 ft.), and to build an oil separation and storage facility and a natural gas pipeline, among other infrastructure on the adjacent blocks.

After the pilot stage, XOM and partners plan to invest an additional $13.8B in the mass development of the blocks by drilling 556 horizontal wells, the government says.

XOM is today's best performing stock among the 30 Dow components thanks to a snap-back in crude oil prices.

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