UPDATE 1-Argentina's YPF disappoints with earnings but output growing

jueves 26 de febrero de 2015 19:04 GYT

(Adds Vaca Muerta output data)

By Eliana Raszewski

BUENOS AIRES Feb 26 (Reuters) - Argentina's state-controlled oil company YPF disappointed the market with its earnings on Thursday but announced that output at a key shale oil and gas field was ramping up.

Output at Argentina's vast but barely tapped Vaca Muerta field has risen to 40,000 barrels of oil equivalent per day (boepd). A report from the formation's home province of Neuquen last month showed output was about 33,000 boepd at the end of September.

YPF, which was nationalized in 2012, is seeking to ramp up production at Vaca Muerta in order to reverse a $7 billion energy deficit that is draining foreign reserves.

The company does not publish output data for the formation on a regular basis.

"Vaca Muerta is important to us because today it has come to represent production of 40,000 boepd," YPF Chief Executive Officer Miguel Galuccio said on a call with reporters.

"However...it still only represents 4 to 5 percent of total output so it does not yet have a significant impact on our results."

Argentina began running energy deficits in 2011, a year before the government expropriated YPF. President Cristina Fernandez said at the time that former parent company Spanish oil major Repsol was not investing enough in Argentina.   Continuación...