Phoenix Global Resources plc, the upstream oil and gas company offering its investors direct exposure to Argentina's Vaca Muerta shale formation and other unconventional resources, is pleased to announce that it has been granted an unconventional concession for its Puesto Rojas block in Mendoza province.
The company has been notified by Mendoza Province that it has been successful in its application for an unconventional concession for the entire Puesto Rojas block. The new concession agreement replaces the previous conventional concession that was due to expire in 2027.
The new unconventional concession agreement has been granted for a primary term of 35 years and contains provision for extensions thereafter. This new concession is the first of its kind to be issued in Mendoza province.
The concession agreement contains a pilot phase with certain works to be completed by June 2022. On conclusion of the pilot phase the company will have the option to move into unconventional development or to terminate the unconventional concession without penalty and resume the conventional development of the block.
Anuj Sharma, CEO, said:
"The award of the unconventional concession represents the achievement of a significant milestone in our plans for the unconventional development of Puesto Rojas and reflects the commitment and hard work of our team over the last several months. The unconventional concession is the first of its kind to be issued in Mendoza and, subject to the satisfaction of the associated commitments, provides clarity and incentive for unconventional activity over Puesto Rojas for the foreseeable future."