Phoenix Global Resources Plc, the upstream oil and gas company offering its investors direct exposure to Argentina’s Vaca Muerta shale formation and other unconventional resources, has been granted an unconventional concession on April 4 for its Puesto Rojas Block in Mendoza Province.

The company has been notified by Mendoza Province that it has been successful in its application for an unconventional concession for the entire Puesto Rojas Block. The new concession agreement replaces the previous conventional concession that was due to expire in 2027.

The new unconventional concession agreement has been granted for a primary term of 35 years and contains provision for extensions thereafter. This new concession is the first of its kind to be issued in Mendoza province.

The concession agreement contains a pilot phase with certain works to be completed by June 2022. On conclusion of the pilot phase the company will have the option to move into unconventional development or to terminate the unconventional concession without penalty and resume the conventional development of the block.