Phoenix Global Resources is currently the sixth largest crude oil producer in the Vaca Muerta, with core operations concentrated in the Neuquén and Río Negro provinces. The private company in five years has grown net production to 25,000 b/d from zero, with only 15% of its acreage developed.
In a release Aug. 20, Mercuria said a planned partnership with Continental Resources—and some $4 billion in capital investment over the next 5 years—are part of a larger plan to grow Phoenix’s production to over 100,000 boe/d from its current 28,000 boe/d.
The HoA envisages a joint venture operating company held 50-50 by Mercuria and Continental holding about 163,000 net acres across six blocks in Vaca Muerta, bringing together Phoenix’s interests in Mata Mora Norte, Mata Mora Sur, Confluencia Norte, and Confluencia Sur, Continental’s operated interest in Los Toldos II Oeste, and additional interests being acquired from Bajo del Toro Este block currently owned by Integra.
The companies anticipate the combined portfolio to qualify under Argentina’s Large Investment Incentive Regime (RIGI), a governmental framework designed to provide 20 years of fiscal, foreign-exchange, and regulatory stability for large-scale developments.
“The reforms led by President Milei and his administration generated our interest in Argentina and strengthened our confidence in its future,” said Doug Lawler, president and chief executive officer, Continental Resources.
