Vista Energy’s Production and 1P Resources Soar Outside of Mexico

Vista Energy announced that its 1P oil and gas reserves rose 39% year-over-year to 251.6MMboe as of December 31, 2022. The company added 87.8MMboe to its P1 reserves, achieving a reserve replacement rate of 495%. However, Vista’s Mexican asset only produced 1% of the output.

In Tabasco, the company’s 1P reserves in block CS-01 decreased from 4.5MMboe at the end of 2021 to 4MMboe due to the production of 0.2MMboe in 2022 and a negative revision of 0.3MMboe. These reserves were calculated at a constant price of US$80.2/b for crude oil and US$4.7MMBtu for natural gas, following US Securities Exchange Commission (SEC) regulations. The estimate of future undiscounted and discounted net cash flows attributable to Vista's interests in Mexico's 2P reserves are US$101.4 million and US$49.6 million as of December 31, 2022, respectively.

Vista Energy reported that the average production for 4Q22 was 54,718boe/d, representing a 33% year-over-year increase. Crude oil production in 4Q 2022 stood at 45,745boe/d, up 41% from the previous year. The total production for 2022 was 48,560boe/d, showing a 25% year-over-year increase, while crude oil production was 40,078bbl/d, indicating a 32% growth compared to 2021.

"Our year-on-year growth continues to reflect the quality of our core Vaca Muerta acreage and demonstrates our ability to generate organic and profitable growth," commented Miguel Galuccio, Chairman and CEO, Vista Energy. "The increase in 1P reserves is a consequence of our continuous good results in Bajada del Palo Oeste, as well as the ramp-up of our development in the newly acquired Aguada Federal block,” he added, referring to two key Argentinian assets.

Mexico’s private oil production did not meet its targets for the fourth year in a row as companies struggle to meet ambitious goals set by the government. The players reported a 102.750Mb/d production in 2022, less than half of 209Mb/d, the original target. Gas production reached 235MMcf/d, 36% below the AMEXHI target. President Andrés Manuel López Obrador set a goal for private companies to produce 280Mb/d with AMEXHI, though the latter might adjust this figure in 2H23.

According to Bloomberg, 80 percent of private production is carried out by Eni, Fieldwood and Hokchi. In Mexico, state-owned PEMEX is responsible for 94 percent of the production, while private companies represent 6 percent.