Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Risks associated with the upcoming run-off election to elect the new President and Vice-President of Argentina, including uncertainty regarding the outcome of such elections, the policies that the winner of such election might implement, and the resulting impact on Argentina's economy and the oil and natural gas industry in Argentina
• The risk that climate change concerns could result in increased operating costs and reduced demand for our products, while the potential physical effects of climate change could disrupt our production and cause us to incur significant costs preparing for or responding to those effects
• The risk that global or national health concerns, including the outbreak of pandemic or contagious diseases, such as COVID-19 (coronavirus), may adversely affect us by, among other things (i) reducing global economic activity thereby resulting in lower demand for crude oil, NGLs and natural gas, (ii) impairing our supply chain (for example, by limiting the manufacturing of materials or the supply of services used in our operations), (iii) affecting the health of our workforce and/or the workforce of our suppliers and/or customers, rendering employees unable to work or travel, thereby potentially impacting our ability to produce, transport and/or sell our crude oil, NGLs and natural gas, and (iv) rendering one or more of our customers, joint venture partners and/or other contractual counterparties insolvent or bankrupt and therefore unable to comply with their contractual obligations to us
• risks associated with operations in emerging markets, including: changes in energy policies or personnel administering them; nationalization of the Company's assets; the development and/or persistence of hyper-inflationary conditions; the potential for a sovereign debt default; significant increases in interest rates; lack of availability of credit; currency fluctuations between the USD, the CDN and the ARS and/or devaluations of the ARS; commodity price controls; export controls; export taxes; changes in royalty and tax rates; and monetary and currency exchange controls, or exchange restrictions
• risks associated with wars, insurrections and other armed conflicts and any resulting economic sanctions (including the ongoing war in Ukraine and related economic sanctions imposed on Russia and associated entities and individuals), including the risk that such events impact economic activity in Argentina or globally and consequently the demand for crude oil and natural gas
• exchange restrictions imposed by the Central Bank of Argentina on the Company's subsidiaries from time to time, which may restrict, among other things: the payment of dividends and profits to the Company; the repatriation of funds by the Company from its subsidiaries; payments made to non-residents for the importation of goods; payments made to the Company for the importation of services; the funding of assets located outside of Argentina; and the obligation to settle certain transactions involving the receipt of foreign funds (i.e. USD) in ARS, including foreign funds obtained from the export of goods such as crude oil
• the risks of the oil and gas industry both domestically and internationally, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand
• general economic conditions in Canada, Argentina and globally, including the risk of a recession in Argentina and/or globally that reduces economic activity
• the ability of management to execute its business plan
• reliance on third party operators and joint venture partners to satisfy their commitments under existing agreements and arrangements and to carry out operations in a safe, efficient and effective manner
• the risks of disputes with third party operators and joint venture partners and the effect that such disputes can have on the Company's operations and results
• uncertainties inherent in estimating quantities of oil and natural gas reserves and cash flows to be derived therefrom and the risk that the value of such reserves may be impaired in future periods, whether due to a change in well performance such as a well beginning to produce a significant amount of water after the effective date of the estimate, a material decline in commodity prices after the effective date of the estimate, or other developments
• fluctuations in the price of oil and natural gas, interest rates, inflation rates and exchange rates
• the risk that the Company will not be able to reduce its operating costs and thereby improve the return on its investments, particularly given that the Company does not operate the concessions from which it derives its production
• lack of diversification of the Company’s oil and gas interests
• the impact of work disruption and labour unrest on the Company’s operations
• actions taken by governmental authorities, including increases in taxes, the introduction of new taxes and changes in government regulations and incentive programs
• geological, technical, drilling and processing problems
• risks inherent in marketing operations, including credit risk
• the ability to enter into, renew and/or extend leases and/or concessions
• the uncertainty of estimates and projections relating to production, costs and expenses
• potential delays or changes in plans with respect to exploration or development projects or capital expenditures including delays arising as a result of the Company’s inability to obtain the necessary oilfield services required, including drilling and fracture stimulation equipment and related personnel, delays arising as a result of the Company's inability to obtain the necessary governmental approvals, including regulatory approvals relating to the protection of the environment, and delays arising as a result of a decline in commodity prices arising as a result of reduced demand for commodities and/or other factors
• the insufficiency of cash flow to fund operations
• uncertainty of finding reserves and developing and marketing those reserves
• unanticipated operating events, which could reduce production or cause production to be shut in or delayed
• the ability of management to identify and complete potential acquisitions
• if completed, the failure to realize the anticipated benefits of acquisitions
• incorrect assessments of the value of acquisitions
• shut-ins of connected wells resulting from extreme weather conditions
• insufficient storage or transportation or processing capacity for the Company’s production, or the need to halt or restrict production while such facilities receive maintenance or repairs or while international borders are closed, or the risk that the cost to use third party facilities increases or that such facilities are decommissioned or otherwise become unavailable to the Company
• hazards such as fire, explosion, blowouts, cratering and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury
• encountering unexpected formations or pressures, premature decline of reservoirs and the invasion of water into producing formations, and the resulting impact on our production and reserves
• the failure to satisfy work commitments by the applicable deadline and the consequences thereof, including the potential loss of exploration and exploitation rights
• the enforcement of civil liability in Argentina
• risks associated with conflicting interests with partners
• income tax reassessments and other taxes payable by the Company
• the ability to add production and reserves through development and exploration activities
• governmental regulation of the oil and gas industry, including the possibility that governments, government policies or laws, including laws and regulations related to the environment, may change in a manner that is adverse to the Company, or that governmental approvals may be delayed or withheld
• failure to obtain industry partner and other third party consents and approvals, as and when required
• risks associated with having a control person owning approximately 59.5% of the Company's shares and having two representatives on the board of directors, including the potential that the control person may exert a significant amount of influence over the Company's affairs and that the liquidity of the Company’s common shares may decline
• risks associated with having two shareholders who control approximately 74.7% of the Company’s shares, including that the liquidity of the Company’s common shares may decline
• stock market volatility and market valuations
• competition for, among other things, capital, acquisition of reserves, undeveloped land and skilled personnel
• the availability of capital on acceptable terms to fund the Company's capital programs and acquisitions, including the ability of the Company to obtain new loans and/or issue new notes, renegotiate the terms of its existing loans and/or notes if necessary and/or repay the principal and interest owing under its existing loans and/or notes, and the risk that changing investor sentiment towards the crude oil and natural gas industry may impact our access to, and the cost of, capital and/or insurance
• the risk of breaches of our cyber-security and loss of, or unauthorized access to, our electronic data

Supply Chain Management

Climate-Related Risks & Opportunities