Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), an upstream oil and gas company, obtained a new concession for its Mata Mora operated block in Neuquén.
Neuquen issued a Decree granting a 35-year unconventional exploitation concession over approximately 43,372 acres in the northern part of Mata Mora and extend for 5 years the exploration rights on approximately 11,918 acres in the southern part of Mata Mora.
The new exploitation concession covers the northern part of the block and provides for a payment of Corporate Social Responsibility of US $ 2.75 million and an infrastructure payment of US $ 3.25 million. The concession comprises a pilot phase with certain works that will be completed by March 2026, and includes an investment commitment of US $ 110 million, consisting of four platforms with three horizontal wells each, with an average lateral length of 2,150 meters.
The exploration rights cover the southern part of the block and consist of a first period expiring in April 2022 and a second four-year period in April 2026. The exploration activity includes a 3D seismic program with an estimated cost of US $ $ 3 million.
The concession is in the name of the provincial oil company Gas y Petróleo del Neuquén SA, in which Phoenix has a 90% interest through a joint venture agreement with GyP, who owns the remaining 10% stake.
“This is an important step for the company on its journey to gradually continue to develop its unconventional oil portfolio in the region. “With oil we are experiencing an energy transition and we see a window of opportunity to value and understand the potential of our assets as soon as possible to invest in a more aggressive way than this. We already have the assets and we don’t want the train of opportunity to pass ”, commented Pablo Bizzotto, CEO of the company.
* The information and opinions published here do not necessarily reflect the editorial line of Mining Press and EnerNews