Argentine regulations usher in 'exciting new chapter' for Phoenix Resources

In a statement, the company said the new regulations will accelerate the permitting process for the completion of the company’s drilled but uncompleted wells in the Puesto Rojas licence area, where Phoenix applied for an unconventional licence in 2017.

Anuj Sharma, chief executive of Phoenix Global Resources, said: "These new regulations provide a clear and balanced framework for the responsible development of unconventional oil and gas and represent a significant step forward in realising the full potential of the Neuquina basin in the Mendoza Province. Importantly, the regulations also provide the foundation for further investment and the creation of new jobs in Mendoza."

In 2018, the company intended to spend up to $120m on the development of unconventional resources in the Neuquina Basin in the Mendoza Province, as the business plan for the year focuses on the drilling and completion of vertical development and exploration wells.

"The announcement of these new regulations will allow Phoenix to recommence and accelerate our unconventional development programme and enable us to play our role in this exciting new chapter for the oil and gas industry in Argentina," said Sharma.

Phoenix has over 6.3m licensed working interest acres in Argentina, of which 5m are currently operated, and an average working interest of approximately 11,070 working interest in boepd in 2017.

As pf 1132 GMT, Phoenix Global Resources’ shares were down 2.10% at 35.00p.