BUENOS AIRES, ARGENTINA (By Continental, 20.Aug.2026, Words: 726) — Mercuria Energy Group held Phoenix Global Resources announced Continental Resources signed a heads of agreement (HOA) outlining a proposed transaction under which Continental will acquire a 50% interest in Phoenix.
Upon completion of the transaction, Mercuria and Continental will become equal owners, forming a 50/50 joint venture operating company focused on the continued development and expansion of Phoenix’s position in Argentina’s Vaca Muerta.
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The proposed transaction represents a significant expansion of Continental’s investment in Argentina and establishes another partnership with Mercuria. The combination of Mercuria’s global energy and investment capabilities, Continental’s decades of experience developing unconventional resources at scale across some of the most prolific oil and natural gas basins in the US, and Phoenix’s established operating platform and deep knowledge of Vaca Muerta, creates a strong foundation for the next phase of development and growth.
As a joint venture partner, Continental will work alongside Mercuria and the Phoenix team, applying the combined technical, operational and subsurface capabilities to enhance development planning, execution and performance across an expanding asset base.
The joint venture is expected to grow Phoenix’s production from 28,000 boe/d to over 100,000 boe/d in the next 5 years. More than $4bn in capital deployment is expected over the next 5 years to support that growth, positioning Phoenix to become 1 of the largest private operators and producers in Vaca Muerta.
The newly formed joint venture operating company will hold approximately 163,000 net acres across 6 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 combined portfolio is of strategic importance to the region, as reflected by the assets’ anticipated qualification under Argentina’s Large Investment Incentive Regime (RIGI).
The proposed joint venture builds on the existing relationship between Mercuria and Continental. The companies are also partners in the Pecos power plant, a 452-megawatt natural gas-fired power generation facility currently under development in West Texas.
The HOA reflects the parties’ current intentions regarding the proposed transaction. Completion of the transaction is subject to the negotiation and execution of definitive agreements, satisfaction of applicable closing conditions and receipt of any required regulatory approvals.
Leadership Perspectives
“Phoenix has built a disciplined, technically strong operating platform with a team that brings deep knowledge and experience in Vaca Muerta. Bringing Continental into Phoenix as a JV operating partner, alongside Mercuria, adds decades of unconventional development and operating expertise that will strengthen our capabilities as we enter the next phase of growth. By combining Phoenix’s established operating platform and knowledge of Vaca Muerta with Continental’s technical and operational experience developing unconventional resources at scale, we believe we have an exceptional opportunity to expand development and build one of the leading independent operators in the basin.” — Pablo Bizzotto, Phoenix Chief Executive Officer
“The reforms led by President Milei and his administration generated our interest in Argentina and strengthened our confidence in its future, ultimately helping pave the way for this significant partnership. Mercuria has been an exceptional partner, and we have tremendous respect for the strong operating platform and track record Phoenix has established in Vaca Muerta. Vaca Muerta is a world-class resource, and we believe the combination of Argentina’s tremendous potential, Phoenix’s established capabilities and Continental’s unconventional development expertise can help further establish the country as a global oil and natural gas leader.” — Doug Lawler, Continental President & Chief Executive Officer
“Our partnership with Continental continues to grow, and this transaction is a natural extension of that relationship into one of the world’s premier shale plays. Together with Phoenix’s operating platform, we now add Continental’s technical depth paired with a joint commitment to further invest in Argentina to build one of Vaca Muerta’s leading independent producers.” — Brian Falik, Mercuria Global Chief Investment Officer
“We are very proud of the accomplishment of an early dream and commitment to transform Neuquén in an international platform extended to the Province of Rio Negro, and deliver oil of Argentina and world market. Mercuria has been the ideal partner to get here. Together with Continental we are sure we will build one of the best performing, unconventional oil producer. Phoenix has proven its excellence.” — Nicolas Mallo Huergo, Integra Chief Executive Officer
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