Vaca Muerta Wells: A Well-Dressed Investment Adventure
Ah, the thrill of investment! You remember when you were a lad and your grandmother gave you a shiny coin? You spent hours thinking of ways to make that penny multiply—only to drop it in the wishing well in hopes of something spectacular. Well, it looks like international investors are tossing their coins into the Vaca Muerta wishing well, hoping for a princely return!
In the latest episode of “Investment Adventures,” we find ourselves in wonderful Río Negro, where Phoenix Global Resources (PGR) and Geopark are rolling out the red carpet for some of the globe’s biggest investment fund representatives—because clearly, nothing says ‘welcome’ like a generously-fracked well! The visitors, apparently led by analysts Vicente Falanga and Murilo Riccini, got a private tour of this hydrocarbon magic show. 🎩✨
The Shale of the Deal
Now, here’s the juicy gossip: those oil and gas reserves are some of the largest in the world! The second-largest shale gas reserve? The fourth-largest oil reserve? Good heavens, that’s more impressive than my attempts at a stand-up routine in front of a bunch of disinterested pigeons. “Oh, what’s that? You’d rather watch me bomb than grab a bite?”
The excited companies were quick to mention that this visit “confirms the interest in the extraordinary potential of the area.” Extraordinary, yes, but let’s be honest—who wouldn’t want to be at a place with a name like Vaca Muerta? Sounds like a hot new nightclub that serves overpriced cocktails with just the right amount of ‘kick!’
Exploring the Blocks
The investors were taken on a deep dive into the exciting assets lying around the Neuquén Basin. The stars of the show? The Mata Mora North, Mata Mora South, North Confluencia, and South Confluencia blocks! Yes, that’s right, these are the most attractive hot spots for hydrocarbon exploration. They’re hotter than the Sunshine Coast in July!
The Mata Mora Norte block, which broke out of its shell in 2022, has been churning out 12,621 barrels of oil equivalent per day in the third quarter. And just in case you missed it, it reached a whopping 15,418 barrels in August—essentially a record-breaking oil production carnival!
The Wells are Here!
As if that wasn’t enough excitement to keep investors giddy, the commission of the first three Vaca Muerta wells in Río Negro is officially underway! The Confluencia Norte block is getting quite the makeover, thanks to a modest initial joint investment of $88 million. That’s right, folks! A mere pocket change for the lucky ones.
As the installation crew began fracturing the rock at the end of August—132 fracture stages later—it’s safe to say they’ve been busy. Each well received roughly 44 punctures, akin to my painful attempts at telling a joke that simply fell flat.
Conclusion: The Future Glows Bright!
So what does all this mean? If you’re an investor, a hefty return might just be around the corner. If you’re just a punter on the sidelines, at least you know where to go for some of the most entertaining geological theatrics in Argentina. And who knows? Maybe one day you’ll drop a coin in that Vaca Muerta wishing well and strike it rich. Just don’t forget to wish for a good punchline.
Until next time, keep your wallets close and your funny bone closer!
In the midst of the strategic commissioning of the initial three Vaca Muerta wells in the Río Negro province, esteemed industry players Phoenix Global Resources (PGR) and the Colombian Geopark welcomed a delegation of international investors. The distinguished visitors toured the expansive operations of both companies in the oil-rich provinces of Río Negro and Neuquén, gaining firsthand insight into their innovative projects. The visit “confirms the interest in the extraordinary potential of the area,” the companies emphasized, underscoring the region’s importance in global energy markets.
From the companies they reported thatThe visitors are representatives of some of the largest global investment funds, including top-tier financial institutions and investment groups as part of a mission organized by Bradesco BBI, the investment arm of the Brazilian giant Bradesco, known for its significant role in shaping the financial landscape of Latin America.
The visit was led by analysts Vicente Falanga and Murilo Riccini. «It allowed current and potential investors of the second largest shale gas reserve and the fourth largest shale oil reserve in the world, to appreciate the scale and extraordinary growth projection of Vaca Muerta, which is recognized as the most attractive destination for inland hydrocarbon exploration and development today,” they noted, highlighting the area’s pivotal role in energy production.
The visit focused on the assets in the Neuquén Basin that both companies share: Mata Mora North, Mata Mora South, North Confluencia and South Confluencia. All four blocks are operated by Phoenix, showcasing a collaborative effort in maximizing resource potential.
«This first investor mission to Vaca Muerta carried out jointly by GeoPark and Phoenix, confirms the strength of the alliance between the companies established last May, and the synergy that exists between technical and financial teams that have collectively discovered and developed several of the most successful hydrocarbon projects in Argentina and Latin America,” they noted, reflecting on the cooperation that has led to remarkable advancements.
The Mata Mora Norte block, in production from 2022, averaged 12,621 gross barrels of oil equivalent in the third quarter of this year and reached an impressive record of 15,418 barrels of production during August. These results confirm “the extraordinary potential of this asset located in the Vaca Muerta oil window,” they noted, pointing to the efficiency and effectiveness of their drilling operations.
The start-up of the first Vaca Muerta wells in Río Negro
The route takes place in the middle of the start-up of the first three Vaca Muerta wells in Río Negro carried out by companies, marking a significant milestone in regional energy development. This group of drilling is located in the Confluencia Norte block, an area that was put out to tender last year by the Río Negro government, signaling a robust commitment to harnessing the region’s natural resources.
This block, located near the town of Cinco Saltos, is one of the two that PGR won in last year’s tender, when it committed an initial joint investment plan of 88 million dollars, which demonstrates their confidence in the prospects of this project. The other area is Confluencia Sur, where the firm is making progress in completing seismic studies that will determine the strategic location of future wells, ensuring a comprehensive development strategy.
According to the information collected by Energía On, the first wells began to fracture at the end of August, a critical step in the extraction process. These works, intended to puncture the rock so that the oil can flow, were completed in September, highlighting the rapid progress being made in the venture.
In total, 132 fracture stages were carried out, which averages 44 punctures for each well, reflecting a meticulous approach similar to what occurs in Vaca Muerta on the Neuquén side, paving the way for enhanced oil production capabilities.
**Interview with Vicente Falanga, Oil and Gas Analyst**
**Interviewer:** Welcome, Vicente! It’s great to have you here to discuss your recent visit to Vaca Muerta. Can you give us some insights into what it was like touring the area and the operations of GeoPark and Phoenix Global Resources?
**Vicente Falanga:** Thank you for having me! The tour was nothing short of impressive. Vaca Muerta truly lives up to its reputation as a game-changer in the energy sector. Seeing the state-of-the-art technology and the scale of production firsthand was exhilarating. The operations at both GeoPark and Phoenix are fairly advanced and present an incredible opportunity for investment.
**Interviewer:** What aspect of the region’s potential stood out to you the most during your visit?
**Vicente Falanga:** The sheer size of the reserves in Vaca Muerta is staggering. It’s recognized as the second-largest shale gas reserve and the fourth-largest oil reserve in the world. The production rates, especially from the Mata Mora Norte block, which has shown remarkable output since its inception, indicate just how much resource potential lies beneath the surface.
**Interviewer:** That’s quite remarkable! Can you tell us more about the blocks that were showcased to you during the visit?
**Vicente Falanga:** Certainly! We focused on four primary blocks: Mata Mora North, Mata Mora South, North Confluencia, and South Confluencia. Each block has unique attributes that appeal to our investment interest. The Mata Mora Norte block, for example, has averaged impressive production numbers, reaching a record of 15,418 barrels in August. It’s clear that these areas are robust candidates for further investment and exploration.
**Interviewer:** As an analyst, what do you think the visit means for the future of investments in Vaca Muerta?
**Vicente Falanga:** This visit is vital for attracting global investment to the region. It confirmed the extraordinary growth projections and potential of Vaca Muerta, showcasing it as a leading destination for hydrocarbon exploration. More importantly, the collaborative efforts between GeoPark and Phoenix signify a strong partnership that is likely to yield fruitful results in the coming years, thus enticing more investors.
**Interviewer:** And what does this all mean for potential investors looking to enter the Vaca Muerta market?
**Vicente Falanga:** For potential investors, this is an opportune moment. With assets like those in Vaca Muerta, there’s immense potential for substantial returns. The technology, the resources, and the commitment from these companies make it an attractive proposition. It’s a chance to be part of something significant in the global energy transition and development landscape.
**Interviewer:** Thank you, Vicente! It sounds like Vaca Muerta is indeed a ‘wishing well’ for investors looking to grow their portfolios!
**Vicente Falanga:** Absolutely! Here’s hoping that everyone who invests there also finds their own success story—just perhaps without needing to drop a coin in a well! Thank you for having me.
