Neuquén awards eight Vaca Muerta blocks with $230.1 million committed

By Olivia Hart

Neuquén awarded eight Vaca Muerta exploration blocks on Oct. 21, committing six awardees to $230.1 million in exploration investment and $180.7 million in access bonuses. The commitments cover 11 horizontal wells (directional wells that follow the target reservoir) to assess acreage outside the formation's main commercial developments.

Argentina's Neuquén province made the awards through Round 1/2026 of the Neuquén Exploration Plan. Gas y Petróleo del Neuquén (GyP), the provincial company, organized the round and will retain an interest in every awarded block. The round drew 20 bids from 10 bidders for eight of the 15 areas offered.

Takeaway: The round commits six awardees to a defined exploration program while preserving a provincial interest on every block.

What did each bidder commit?

The programs specify horizontal laterals (the horizontal section measured in metres), hydraulic fracturing stages (fracture points along a lateral), and 3D seismic (three-dimensional subsurface imaging). The awarded work is exploratory; no production capacity or startup date was announced.

• Petrolera Comodoro Rivadavia (PCR) won three blocks: La Tropilla I, Águila Mora Noreste, and Santo Domingo II. PCR will drill one horizontal well in each block, each with a 1,500-metre lateral and 25 hydraulic fracturing stages. It will also acquire and process 380 square kilometres of 3D seismic.
• Patagonia Energy won Corralera Noroeste. It will drill three horizontal wells, each with a 3,000-metre lateral, and complete 150 fracturing stages in combination. The program also includes 85 square kilometres of 3D seismic.
• GeoPark added Corralera Noreste. Its initial program calls for two horizontal wells, each with a 2,000-metre lateral and 30 fracturing stages, within a four-year exploration period. GeoPark will hold a 90% working interest (its share of production, costs, and operations), with GyP retaining 10%.
• JPM Energía won Pampa de las Yeguas II NE. Its proposal requires one horizontal well with a 3,000-metre lateral and 53 fracturing stages.
• The Phoenix–Continental Resources partnership was selected for Corralera Sur. It will drill one horizontal well with a 1,500-metre lateral and 14 fracturing stages. Its seismic program covers 150 square kilometres of acquisition and 105 square kilometres of specialized processing.
• Selva María Oil won Chasquivil Sur. It will drill one horizontal well with a 1,500-metre lateral and 30 fracturing stages, along with seismic work covering 110 square kilometres.

Takeaway: The six programs pair 11 horizontal wells with specified fracture and seismic work across the awarded blocks.

Who holds the interests and royalties?

GyP will retain a 10% interest in seven blocks and 15% in Chasquivil Sur. The GeoPark agreement separately confirms GyP's 10% interest in Corralera Noreste.

Bid royalty rates (percentages payable on production) are 12% for the awards, except Pampa de las Yeguas II NE and Chasquivil Sur, which carry 15% rates. The winning bids combine $230.1 million in exploration investment with $180.7 million in access bonuses (payments associated with obtaining block access).

Takeaway: The province keeps a minority stake in every block and applies its two highest royalty rates to Pampa de las Yeguas II NE and Chasquivil Sur.

What happens next?

The next steps are execution of the joint venture agreements and approval from the provincial executive branch. No drilling start date accompanies the awards.

Neuquén plans to open a second round in November. It will include areas that drew no bids in Round 1/2026 and blocks relinquished by other operators.

Takeaway: The immediate watch item is provincial executive approval of the joint ventures, while November's second round will put unbid and relinquished acreage back into the process.