The Valanginian-Aptian organic rich marine shale interval of the Palermo Aike Formation (PAI) is the main source rock of the Austral Basin, in southern Argentina and Chile. This paper presents the methodology used to characterize the play, identify sweep spots, select legacy vertical wells for fracking and the results of the first four shale fractures in the basin. The study area covers 18.000 sqkm with extensive 3D and 2D seismic coverage and more than 300 wells. Geological, geophysical and geochemical studies were carried out at a regional and local scale. Organic richness, thickness, maturity and overpressure maps allowed to rank areas and existing wells for testing. Main target intervals are found at depths between 2.800 to 3.500 m with gross thickness between 150 and 400 m. Five main marine sequences were defined, PAI-10, 20 and 40 (Valanginian-Hauterivian) and PAI-60, MV (Aptian-mid-Albian), being PAI-20 and 40 the intervals of greatest interest. TOC ranges from 0.5 to 3% and kerogen is type II and II/III dominated by amorphous macerals. Lithology consists of dark clays interbedded with very fine-grained sandstones and siltstones. Overpressure is present at different ranges depending on the generation windows. Two areas were selected to start testing phase and two wells were successfully fractured and tested. Stabilized inflow of liquid hydrocarbons were obtained from the first one, while the second one is being tested. The results presented herein represent a major step in the knowledge and search for commercial production from this shale play