Oklahoma-based Continental Resources is deepening its investment in Argentina’s vaca Muerta shale formation, a region increasingly crucial to the country’s energy independence. the company has entered a partnership with Pan American Energy (PAE) to acquire a 20% stake in four key blocks, signaling continued confidence in the long-term potential of Latin American oil and gas development [[1], [2]]. This move follows a recent surge in Argentina’s crude oil production, which reached a new high in 2023, largely fueled by output from Vaca Muerta [[[2]].
Continental Resources, the energy company founded by shale pioneer Harold Hamm, is expanding its footprint in Argentina’s Vaca Muerta formation through a new partnership with Pan American Energy (PAE). The move signals continued investor interest in the prolific shale play, which is increasingly vital to Argentina’s energy production.
Under the agreement, Continental Resources will acquire a 20% stake in PAE’s holdings across four key blocks: Coirón Amargo Sureste, Bandurria Centro, Aguada Cánepa, located in the Neuquén province, and Loma Guadalosa, situated in Río Negro. PAE will retain its position as the majority partner and operator for all four areas.
The deal follows Continental Resources’ recent acquisition of oil assets from Pluspetrol, further demonstrating the company’s commitment to the region. Hamm, 79, visited Argentina in September and met with President Javier Milei at the Quinta de Olivos, underscoring the strategic importance of the country’s energy sector.
Continental Resources, known for its pioneering work in unconventional resource development – utilizing horizontal drilling and hydraulic fracturing, or “fracking” – currently produces the equivalent of 500,000 barrels of oil per day and operates over 5,200 wells. The company applies a similar rigorous technical approach and long-term development vision to new opportunities, including Vaca Muerta, according to a PAE statement.
Based in Oklahoma City, Continental Resources transitioned from a publicly traded company in November 2022 when Hamm and his family completed a buyout of remaining shares. Bloomberg estimates Hamm’s net worth at approximately $12 billion.
The company is a major leaseholder and producer in the Bakken formation in North Dakota and Montana, and the leading producer in the Anadarko Basin in Oklahoma. It also holds the second-largest leasehold position in the Powder River Basin in Wyoming and a significant presence in the Permian Basin in Texas.
Hamm’s career began with a single truck purchased with borrowed funds, and he has since advised U.S. presidents on resource and energy policy, as detailed in his biography. In November, Continental Resources acquired the Los Toldos II Oeste block from Pluspetrol, which Pluspetrol had previously obtained through the acquisition of ExxonMobil’s assets in the country.
“Vaca Muerta is one of the most attractive shale formations in the world and we are excited to continue investing in Argentina and solidify Continental’s position through this agreement with Pan American Energy,” said Doug Lawler, President and CEO of Continental Resources. “PAE is a highly capable operator with deep experience in the basin. We have great expectations of learning from PAE and sharing Continental’s expertise in unconventional resources to drive the development of Vaca Muerta.”
The closing of the transaction is contingent upon approval of the stake transfers by the Neuquén and Río Negro provinces.
Marcos Bulgheroni, Group CEO of Pan American Energy, stated: “This strategic relationship with one of the leading independent oil and gas companies in the United States seeks to accelerate the development of the four areas in both provinces. As a non-operating partner, Continental will contribute its know-how in derisking, development, and operational efficiency with the objective of unlocking the enormous unconventional resources our country has.”
PAE has invested in Neuquén for over 50 years, currently producing 12 million cubic meters of gas and 40,000 barrels of oil per day in the province, equivalent to approximately 100,000 barrels of oil equivalent per day (BOED). The company operates seven areas – six in the development stage – and participates as a non-operating partner in two others. In Río Negro, PAE operates the Loma Guadalosa area, the first unconventional exploitation concession granted by that province.
Argentina’s crude oil production reached 859,500 barrels per day, surpassing the 1998 record of 847,000 barrels. Vaca Muerta currently accounts for 60% of the country’s total supply, producing over 515,000 barrels daily.
