Vista reports boost to production, reserves at Argentina's Vaca Muerta

By Eliana Raszewski

BUENOS AIRES, Feb 15 (Reuters) - Mexican firm Vista Energy said on Thursday that its proven reserves at the Vaca Muerta shale formation in Argentina increased by 27% in 2023, while daily production grew by 14% in the fourth quarter.

Vista, Argentina's second-largest shale oil producer behind state-owned YPF, recorded proven reserves totaling 318.5 million barrels of oil equivalent (boe) as of Dec. 31, the company said in a statement.

"Our primary objective is still to strengthen our leadership position in generating organic and profitable growth," CEO Miguel Galuccio said.

During the final quarter of last year, Vista recorded average daily production of 56,353 boe, an increase of 14% compared with the preceding quarter, largely on the back of production at 11 new wells in the Bajada del Palo Oeste block, part of the Vaca Muerta shale oil deposit.

The company is a leader among independent producers in the giant Vaca Muerta formation, one of the few bright spots in an economy that is grappling with inflation above 200% and depleted foreign currency reserves.

Argentina is betting on Vaca Muerta - the world's second-largest shale gas reserve and fourth-largest shale oil reserve - to turn the South American country into an energy powerhouse and curb dependence on costly imports.

Vista aims to put out 100,000 barrels of oil equivalent per day (boe/d) by 2026, and 150,000 boe/d by 2030, the company said on Thursday.

Oil production in the province of Neuquen, where the Vaca Muerta formation is located, registered record output in December of 381,416 boe/d as more wells came online. (Reporting by Eliana Raszewski; Writing by Lucinda Elliott)