Continental consolidates its strategy in Vaca Muerta and raises expectations for new U.S. investments

Continental Resources is expanding its presence in Vaca Muerta through a gradual strategy that combined operated and non-operated participations before advancing toward a joint platform with Phoenix Global Resources and Mercuria.

Entry began with a 90% operated participation in Los Toldos II Oeste and continued with non-operated positions in four Pan American Energy blocks. The latest announced move was the agreement to acquire 50% of Phoenix Global Resources and establish an operating structure with equal shares between Continental and Mercuria.

The expansion could still continue. Continental and Phoenix submitted bids for six of the eight blocks that received technical proposals in Neuquén's 1/2026 licensing round, a signal of interest in building a long-term position in the basin.

According to estimates cited in the analysis, the platform being formed could encompass more than 65,900 hectares, require investments exceeding USD 4 billion over five years, and target production of more than 100,000 barrels of oil equivalent per day.

The appeal is also linked to productivity. Recent wells operated by Phoenix registered around 40 barrels of oil per lateral foot during their first two years, compared to around 38 barrels for Vaca Muerta overall, 27 in Delaware, and roughly 19 in Midland.

The strategy outlines a possible path for other independent U.S. companies through joint ventures, farm-in agreements, minority stakes, or acquisitions of local platforms. For Argentine companies, the scheme could enable capital contribution, technical expertise, and services without necessarily relinquishing control of assets.

The Neuquén round results also highlighted proximity to existing infrastructure, established developments, and previous operating positions as factors weighing on the assessment of risk and block potential.

With information from Infobae — Economía.