Continental Deepens Bet on Argentina’s Vaca Muerta Shale Frontier

OKLAHOMA CITY, OK – January 05, 2026 – Continental Resources, the largest privately held oil and gas producer in the world, announced today a significant expansion of its position in Argentina’s prolific Vaca Muerta shale play. The company signed an agreement with Pan American Energy (PAE) to acquire non-operating interests in four blocks within the Neuquén Basin, signaling a deepening commitment to one of the most promising unconventional energy resources outside of North America.

This move follows a November 2025 agreement to acquire operated interests in the Los Toldos II Oeste block, establishing a dual-pronged strategy for the Oklahoma-based giant. By combining direct operational control with strategic partnerships, Continental is positioning itself to apply its decades of shale expertise to a region with immense, largely untapped potential.

“Vaca Muerta is one of the most compelling shale plays in the world, and we're thrilled to continue to invest in Argentina and build Continental's position through this agreement with Pan American Energy,” said Doug Lawler, President & CEO of Continental Resources. “PAE is a highly capable operator with deep basin experience. We're eager to learn from PAE and share Continental's unconventional expertise to advance the Vaca Muerta.”

A Strategic Push into a Global Shale Giant

The Vaca Muerta formation is often compared to the Permian Basin in the United States for its scale and geological quality. It holds the world's second-largest unconventional gas reserves and the fourth-largest unconventional oil reserves. Recent production figures underscore its rapid development, with oil output reaching a record 327,000 barrels per day (bpd) in late 2023, and the International Energy Agency projecting it could reach 1 million bpd by 2030, transforming Argentina into a net oil exporter.

For Continental, a pioneer of the U.S. shale revolution in plays like the Bakken, the Vaca Muerta represents a perfect match for its technical prowess. The company’s long history of innovation in horizontal drilling and hydraulic fracturing is directly applicable to the challenges and opportunities in the Neuquén Basin. The new partnership with PAE is designed to accelerate this knowledge transfer. The non-operating stake will facilitate shared insights on everything from subsurface characterization and well completion design to infrastructure planning and market access, effectively creating a collaborative learning environment on a massive scale.

This balanced approach of holding both operated and non-operated assets allows Continental to de-risk its entry while gaining broad exposure. The operated block serves as a laboratory for deploying its proprietary techniques, while the non-operated interests provide valuable data and shared experience from a seasoned local partner.

The Private Powerhouse's Global Playbook

Since being taken private by the family of founder Harold Hamm in 2022, Continental Resources has been able to execute a bold, long-term strategy free from the quarterly pressures of public markets. Its international expansion into Argentina and a separate unconventional resource venture in Türkiye are prime examples of this long-term vision. The company is leveraging its significant financial strength and operational track record to secure positions in what it views as the next generation of world-class resource plays.

Lawler emphasized this strategic rationale, stating, “These recent transactions in Argentina strengthen Continental's long-term value strategy: participating in world-class resources here and abroad, accelerating basin learning through ongoing development exposure, and applying that knowledge to drive robust results over time.”

This philosophy is encapsulated in a mantra Lawler often repeats: “The rock doesn't know what country it's in.” The statement underscores the company’s belief that its technical expertise in unlocking shale resources is universally applicable, provided the geology is right. By diversifying its portfolio beyond its vast U.S. holdings in the Bakken, Anadarko, Powder River, and Permian basins, Continental is building a more resilient and globally significant enterprise.

Navigating Argentina's Promise and Peril

Continental's investment comes at a pivotal moment for Argentina. The administration of President Javier Milei has embarked on an ambitious, and often controversial, campaign of economic liberalization, deregulation, and fiscal austerity. A central pillar of this strategy is attracting foreign direct investment to unlock the country’s vast natural resources, with Vaca Muerta at the forefront. The government is actively working to reform its hydrocarbons law to offer more stable terms, ease strict currency controls, and reduce the bureaucratic hurdles that have historically plagued the sector.

However, the risks remain substantial. Argentina continues to grapple with triple-digit inflation, currency instability, and a long history of political and economic volatility. For foreign companies, the challenges of repatriating profits and navigating complex regulations are significant. Continental's investment is therefore a calculated wager that the geologic prize of the Vaca Muerta and the potential for a more favorable business climate under the new government will ultimately outweigh these considerable risks.

This high-stakes environment favors well-capitalized, long-term investors like Continental, which can withstand short-term volatility in pursuit of substantial long-term returns. The success of such investments is seen as critical to Argentina's hopes for economic recovery and achieving energy independence.

A Crowded Field of Titans and the Power of Partnership

Continental is entering a competitive landscape already populated by global energy heavyweights. Argentina’s state-controlled YPF is the dominant player, but international majors like Chevron, ExxonMobil, and TotalEnergies have also established significant operational footprints, often in partnership with YPF. This makes the choice of a local partner critically important.

Pan American Energy is one of Argentina’s most formidable and respected operators. As a joint venture between global supermajor BP and Bridas Corporation—itself a partnership between Argentine and Chinese interests (CNOOC)—PAE brings a unique combination of local expertise, financial muscle, and international backing. The company is already a top producer in the basin and has a deep understanding of its operational complexities.

Marcos Bulgheroni, CEO of Pan American Energy, highlighted the mutual benefits of the collaboration. “This strategic relationship with one of the leading independent oil and gas companies in the United States aims to accelerate the development of the four areas in both provinces,” he said. He noted that Continental’s know-how in de-risking and development would be key to “unlocking the enormous unconventional resources our country possesses.”

This partnership is also crucial for tackling one of Vaca Muerta's biggest challenges: infrastructure. While major pipeline projects like the Néstor Kirchner Gas Pipeline (GPNK) and the Oldelval oil pipeline expansion are underway, development still outpaces takeaway capacity. Collaborative efforts between experienced operators are essential to coordinate the massive investment needed to build out the pipelines, processing plants, and export terminals required to fully realize the Vaca Muerta’s potential.