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Continental Resources Joins PAE to Accelerate Vaca Muerta With 20% Stakes in Four Blocks

Provincial approval now dictates timing of a plan to reinvest proceeds to accelerate Vaca Muerta drilling.

Overview

  • PAE will remain the majority partner and operator as the companies target a faster development pace through reinvestment and efficiency gains.
  • Continental will acquire 20% of PAE’s interests in Coirón Amargo Sureste, Bandurria Centro and Aguada Cánepa in Neuquén, plus Loma Guadalosa in Río Negro, which was recently converted to an unconventional concession.
  • Closing of the transaction is contingent on transfer approvals from the provinces of Neuquén and Río Negro.
  • Founder Harold Hamm said Continental intends to invest about US$100–200 million annually in Vaca Muerta assets.
  • The alliance builds on Continental’s agreed purchase of 90% of Los Toldos II Oeste from Pluspetrol, a deal still pending regulatory clearance.