Vaca Muerta entry playbook: world-class shale opportunities

An improving operating environment and well productivity gains in Vaca Muerta have drawn global attention, leading to an uptick in M&A and licensing activity. With the play in early stages, there is plenty of opportunity to build a strong position at a low cost in comparison with US prices. Options include partnerships with YPF, licensing rounds, and acquisitions from incumbent acreage holders. As more players become involved in developing Argentina's shale resources, we expect entry costs to rise gradually. Several years into the play's development, the first-movers have done the legwork of de-risking certain areas that will benefit new players and help reduce project lead times. But given Vaca Muerta's immense size, there is plenty of untested acreage available and time yet to be a part of proving it up.