Harold Hamm, founder of Continental Resources, has launched a multibillion-dollar plan to expand drilling operations in Argentina's Vaca Muerta shale. Continental Resources has signed a Heads of Agreement to acquire a 50% interest in Phoenix Global Resources from Mercuria Energy Group, forming a 50/50 joint venture. This alliance, which also includes participation from Argentine businessman José Luis Manzano's Integra Capital, aims to make them a leading independent operator in the Vaca Muerta.
The joint venture plans to invest over $4 billion within the next five years to increase Phoenix's current production of 28,000 barrels of oil equivalent per day (kboepd) to more than 100,000 kboepd. The combined portfolio will encompass approximately 163,000 net acres across six blocks, including Phoenix's interests in Mata Mora Norte, Mata Mora Sur, Confluencia Norte, and Confluencia Sur, Continental's operated stake in Los Toldos II Oeste, and additional interests in Bajo del Toro Este.
Doug Lawler, President and CEO of Continental Resources, cited President Javier Milei's reforms as a key factor in generating their interest and confidence in Argentina's future. He described Vaca Muerta as a "world-class resource" and believes the partnership will help establish Argentina as a global leader in oil and natural gas. The companies anticipate that their combined portfolio will qualify for Argentina's Large Investment Incentive Regime (RIGI), which provides long-term fiscal, foreign-exchange, and regulatory stability for significant developments. This move builds on Continental's earlier entry into Argentina last year with the acquisition of a 90% operating stake in the Los Toldos II Oeste block.
