Oil production from the vaunted Vaca Muerta shale deposit in the Neuquén basin in Western Argentina has come roaring back after months of slower exploration and production activity.

Vaca Muerta reached a record high of 124,000 b/d in December, and it can continue toward 145,000–150,000 by the end of 2021 if current activity levels continue, according to a new analysis by Rystad Energy.

During its earnings call in January, executives at oilfield services giant Halliburton Co. backed this assessment, saying they saw “stronger stimulation activity” in Argentina in the fourth quarter.

In November, executives at Argentina’s state energy firm Yacimientos Petrolíferos Fiscales SA (YPF) said their oil and gas fields were starting to return to work after the complete...