Nearly two months after Continental Resources announced it had signed an agreement to conduct drilling operations in Argentina, the company has yet to see any production.
“At the time of this filing, our 2026 activities in Argentina have no production or revenues and represent an immaterial portion of our consolidated assets,” stated the company in a recent filing with the Securities and Exchange Commission.
The firm confirmed that in the first quarter of 2026, it had expanded operations internationally via the acquisition of assets within the Vaca Muerta shale play in Argentina’s Neuquen Basin.
- Primarily located in Neuquén Province, it spans parts of western Argentina and central Chile, bordering the Andean Volcanic Belt.
- Energy Hub: It is the core of Argentina’s unconventional oil and gas production, particularly the Vaca Muerta (shale) and Los Molles (tight gas) formations.
- Geology: The basin features a 4,000–6,000 meter thick sedimentary succession (Triassic-Tertiary) with multiple petroleum systems. It has a complex history of rift-to-foreland evolution.
- Vaca Muerta Shale: Often compared to the Eagle Ford play in the U.S., this formation contains rich, organic calcareous shales with high petroleum potential.
- Development: While long-established, production has surged in the last decade, with increasing efforts toward domestic management of resources.
Continental founder Harold Hamm and current President and CEO Doug Lawler made the announcement in January that the firm had signed an Assets Sale and Purchase Agreement with Pan American Energy to acquire certain non-operating interests in four blocks located within the Vaca Muerta shale play in Argentina’s Neuquén Basin. It came just two months after Hamm visited Argentina and met President Javier Milei.
“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 Lawler. “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.”
The entry into South American oil production would be the first for Continental Resources which reported that as of the end of 2025, all of its operations were conducted onshore in the U.S.
“In the first quarter of 2026, we expanded our operations internationally via the acquisition of assets in Argentina and will be subject to the regulatory environment in that country going forward. The crude oil and natural gas industry in both the United States and Argentina is subject to various types of regulation at the federal, state, and local levels,” stated the company’s filing with the SEC.
“The acquired properties include undeveloped acreage with no production or revenues as of the closing date and currently represent an immaterial portion of the Company’s consolidated assets. The acquisition represents the Company’s initial entry into Argentina and is expected to generate future development opportunities that expand the geographic scope of the Company’s operations.”
The company admitted the entry to South American drilling isn’t without financial risk because certain environmental laws in Argentina provide for citizen suits.
“This risk is particularly relevant in Argentina, where collective rights and broad standing in environmental matters are expressly recognized. We have incurred and will continue to incur operating and capital expenditures, some of which may be material, to comply with environmental, health, and safety laws, rules, and regulations,” stated the company.