Continental Resources has signed a heads of agreement to acquire a 50% interest in Phoenix Global Resources from Mercuria and form an equal joint venture focused on Argentina's Vaca Muerta shale formation. The transaction value was not disclosed.
The document records the parties' current intentions rather than a completed acquisition. Closing remains subject to negotiating and signing definitive agreements, satisfying applicable conditions and obtaining required regulatory approvals, so the ownership change is still proposed.
If completed, Continental and Mercuria would each own half of the operating company. The partners expect to deploy more than $4 billion over five years and increase Phoenix production from more than 28,000 barrels of oil equivalent per day to above 100,000 boepd.
The combined portfolio would span about 163,000 net acres across six Vaca Muerta blocks. It would bring together Phoenix interests in Mata Mora Norte, Mata Mora Sur, Confluencia Norte and Confluencia Sur, Continental's Los Toldos II Oeste interest and additional interests being acquired in Bajo del Toro Este.
The assets are expected to seek qualification under Argentina's Large Investment Incentive Regime, which offers tax and legal benefits for major projects. Qualification is anticipated rather than guaranteed and will depend on the applicable governmental process.
The plan marks Continental founder Harold Hamm's third Argentina-focused transaction since November 2025. The company first acquired Vaca Muerta assets from Pluspetrol and then took interests in blocks operated by Pan American Energy, building its position through a sequence of acquisitions and partnerships.
President Javier Milei's deregulation program and investment incentives contributed to Continental's interest, according to company leadership. The investment thesis also rests on Vaca Muerta's resource quality, expanding infrastructure and Argentina's rising oil output, not solely on current policy promises.
Mercuria and Continental already share the 452-megawatt Pecos gas-fired power project in West Texas, giving the proposed Argentine venture an existing partnership base. The industrial ambition is substantial, but the immediate milestone is execution of binding documents and approvals, not the 100,000-boepd target itself.
