Continental Resources Agrees to Enter Phoenix Global and Plans to Invest More Than USD 4 Billion in Vaca Muerta

Continental Resources, the U.S. oil company controlled by Harold Hamm, signed a preliminary agreement to acquire half of Phoenix Global Resources. The deal will give rise to a joint platform with Mercuria Energy Group, Phoenix's current majority shareholder, to develop assets in Vaca Muerta.

The plan calls for outlays of more than USD 4 billion over the next five years. Phoenix currently produces more than 28,000 barrels of oil equivalent per day, and the goal is to surpass 100,000 kboepd, which would place the company among the region's leading private operators.

The platform will span roughly 163,000 acres, equivalent to approximately 65,000 hectares, spread across six blocks in the Neuquén formation. The assets include Mata Mora Norte and Sur, Confluencia Norte and Sur, Continental's operated interest in Los Toldos II Oeste, and Bajo del Toro Este, currently held by Integra.

The agreement also expands Continental's presence in Argentina and deepens its relationship with Mercuria, with which it is already involved in developing a 452-megawatt natural gas power plant in Texas. The combination aims to integrate Continental's expertise in unconventional resources, Phoenix's operations in Vaca Muerta, and Mercuria's international capabilities in the energy sector.

The joint portfolio also has a strategic framework under the Incentive Regime for Large Investments (RIGI), which provides benefits for these assets. Phoenix concentrates its operations in Neuquén and Río Negro, has multiplied its net production fivefold over five years, and has so far developed 15% of its concession area.

The company is currently the sixth-largest crude oil producer in Vaca Muerta. Continental, headquartered in Oklahoma City, is the world's leading private producer of oil and natural gas, with operations in various basins across the United States, including the Bakken, Anadarko, Powder River and Permian.

With information from Energía Online.