On August 29th, 2024, through decree 184/24 (the “Decree”) the Government of Rio Negro launched a tender for the exploration of the Cinco Saltos Norte hydrocarbon area, following a request from the national company Capex under the Private Initiative modality. The 141 km² area is located 40 km from Cipolletti and borders blocks where Phoenix Global Resources is drilling wells for Vaca Muerta.
The area has detailed geological information, such as 2D and 3D seismic studies, and a history of activity since 1970, with previous drilling by companies such as YPF and Pluspetrol.
The tender requires an investment commitment of $5.6 million for a three-year First Exploration Period, equivalent to 1,120 Work Units. The cost of the tender is $5,000. In addition, the winning company will be required to pay 2.5% of the hydrocarbons produced monthly, valued at the previous month’s price.
Capex will have the right of first refusal if the bids are equal, as happened in a previous tender where Phoenix Global Resources displaced Pan American Energy by improving its bid. Phoenix is currently completing the fracturing of three wells in Confluencia Norte, and expects to bring them on production soon to assess the potential of Vaca Muerta in the region.
