Phoenix Global Resources has announced that it will be releasing £85million in a new fracking project in Argentina.
Traditionally an oil and gas exploration firm, Phoenix have announced in its Operational Overview of new business for 2018 that it intends to ‘target Vaca Muerta and unconventional projects in the Neuquén basin’.
Transitioning into fracking for shale gas, the firm announced that they intend to continue their focus within Argentina due to a number of advantageous economic and political factors.
The company will benefit from a £113million cash injection from Mercuria Group.
Sir Michael Rake, non-executive chairman of Phoenix and a former chairman of BP, said: “The additional commitment from Mercuria Group, allows Phoenix to strengthen its balance sheet and accelerate its plans for growth. Mercuria’s support and flexibility reaffirms the positive outlook for Argentina and significant potential of our Vaca Muerta unconventional assets.”
Phoenix confirmed that it intends to accelerate its drilling in the region over the coming year and will double capital expenditure from just under £64million last year to £135million in 2018.
Anuj Sharma, CEO of Phoenix said: “I am excited to announce our accelerated business plan for 2018. This business plan will allow Phoenix to further de-risk its highly attractive asset base, bringing the best unconventional technology and expertise to deliver value to its shareholders.”