Phoenix Global Resources inaugurated the first unconventional exploration in Río Negro with the visit of provincial authorities

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from Phoenix Global Resources
November 11, 2024

November 11, 2024. Phoenix Global Resources welcomed provincial authorities at Confluencia Norte, after putting into production the first PAD of three unconventional wells in Río Negro. The main objective of the visit, guided by the company's CEO Pablo Bizzotto, was to tour the facilities and show the lessons learned from this first experience.

The first PAD involved drilling a vertical pilot well for data acquisition and subsequently drilling three horizontal wells with lateral branches of 3,000 meters as per the commitment, reaching a final depth of 6,300 meters each. These first wells were fractured with advanced high-intensity stimulation techniques based on the learning curve and the results of Vaca Muerta at a regional level, executing a total of 135 stages.

This first exploratory PAD, which entered into production in mid-October, confirms the presence of the Vaca Muerta reservoir at the western end of the area, with petrophysical and thickness characteristics similar to the wells drilled by Phoenix in Mata Mora Norte. To date, production amounts to 4,000b/d of oil within the flowback and well testing period. As part of the exploratory commitment assumed for the Confluencia Norte and Sur areas, 228km2 of 3D seismic data were also recorded and processed, currently in the interpretation phase. This new data acquired is essential for the definition of future wells in the area.

“The initial results are favorable and we will continue to analyze the subsoil parameters to verify the characteristics of Vaca Muerta in the area. At Phoenix we are proud to be able to support the province in this milestone that could significantly improve the production of Río Negro and, personally as a resident of Río Negro, I am very excited to be able to contribute to my province,” said Bizzotto.

This first exploratory phase is part of the commitments made to the province of Río Negro, together with the exploration of the Confluencia Sur block for an investment exceeding 85 million dollars. The Confluencia Sur activity is part of the company's exploratory commitments for 2025.

Latin American company GeoPark Limited has recently acquired a 50% stake in the Confluencia Norte and Confluencia Sur blocks.

About Phoenix Global Resources:

Phoenix Global Resources is an energy company focused on oil and gas exploration and production in Argentina. It has assets in the Neuquén basin (in the provinces of Neuquén and Río Negro) and in the Cuyo basin (Mendoza).

In the last two years, the company has invested in its assets in Vaca Muerta: Mata Mora Norte and Sur in the province of Neuquén and Confluencia Norte and Sur in the province of Río Negro. With the acquisition of these last two areas in July 2023, the company has consolidated its presence in one of the largest shale formations in the world with 500 km2 in an area of proven productivity. In recent days, it has reached a production of 15,500 bbl/d in its unconventional assets.