Phoenix Global Resources confirms major investment in Vaca Muerta

Phoenix Global Resources confirmed a multi-billion-dollar investment in Vaca Muerta in southwestern Argentina, after terminating an agreement signed a year ago with Colombia’s GeoPark.

Phoenix, a subsidiary of Switzerland’s Mercuria Energy Trading, stated in a press release that the acquisition of interests in the Mata Mora Norte and Sur and Confluencia Norte and Sur blocks by GeoPark “is legally void.”

In May 2024, the two companies had announced an agreement under which GeoPark would acquire a 45% stake in the production block Mata Mora Norte and the exploration block Mata Mora Sur, both in Neuquén province, and a 50% interest in the exploration blocks Confluencia Norte and Confluencia Sur, located in Río Negro province. All these assets are part of the Vaca Muerta formation.

“The contract stipulated that if certain contractual conditions precedent were not met within a certain period, either party could terminate it. Phoenix Global Resources decided to end the agreement and will continue independently in the aforementioned unconventional blocks,” the statement said.

The company assured that this situation does not affect normal operations in the areas, which will continue to be operated, as before, by Phoenix Global Resources.

It also confirmed its investment plan of $2 billion over the next five years in the four blocks, now to be fully financed by Phoenix.

The investment plan includes the addition of a second drilling rig, already contracted, which will begin operations in January 2026, and the ongoing construction of a crude oil processing plant with a capacity of 40,000 barrels per day, scheduled to begin operations in May 2026.

The plant, being built in Mata Mora Norte, will employ around 200 direct and indirect workers.

Phoenix reported that it has invested approximately $750 million in its unconventional assets in Vaca Muerta.

For Mata Mora Norte, its flagship field in Neuquén, the company projects production of 40,000 barrels per day.

Meanwhile, in Confluencia Norte and Sur — areas recently brought into production in Río Negro through the first exploratory project in that province’s portion of Vaca Muerta — the company forecasts production of 70,000 barrels per day, with an inventory of 500 wells to be developed.

“Since the beginning of its operations in Vaca Muerta, Phoenix’s investment program has been fully financed by the company with the backing of its main shareholder, Swiss-based Mercuria Energy Trading,” Phoenix emphasized, adding that it “will continue investing in Argentina and places its confidence in the provinces where it operates, doubling down on its assets in Vaca Muerta.”

In a separate statement, GeoPark — whose shares are traded on the New York Stock Exchange — confirmed Phoenix’s decision to terminate the 2024 agreement and said it remains firmly committed to its long-term strategy, focused on profitable, reliable, and sustainable growth through the development of large assets in major fields and basins. The company said it will pursue other strategic investment opportunities.