Vaca Muerta Strategic Investment
Conventional Assets Overview
High-quality oil-prone production cluster
Asset Overview (1)
■ Clustered acreage position in the Neuquina Basin covering ~538k acres in
the Provinces of Neuquén and Río Negro
Oil and gas production from well-understood reservoirs through primary
and secondary recovery; ~680 active producing wells and more than 190
injector wells
■Multiple infill drilling and waterflood projects identified; current recovery
factor below 15%
■Light crude oil production (Medanito type API >31°); sold to domestic of
takers at -2% discount to Brent
Gas production sold to industrial clients (80%), power plants (15%) and
residential clients (5%) at an average market price of approximately
$4.6/Mmbtu
Treatment and evacuation infrastructure in place with spare capacity
■ Exploratory upside in the tight gas reservoirs of the Cuyo, Lotena, and Los
Molles formations
Asset Profile (4)
Oil
Production
27.5 Kboe/d
1P Reserves
55.7 MMboe
P1
3P Reserves
82.6 MMboe
60%
Gas
40%
64%
36%
P2
P3
68%
24%
8%
Blocks with
unconventional potential
Net Metric
Entre Lomas Agua Amarga
Jagüel
Medanito
CAN
Bajada del Palo
CASO
Total
W.I. (%) (1)
100%
100%
100%
100%
55%
I
100%
45%
I
1P Reserves (1)
20.5
2.5
6.9
10.1
1.0
13.5
0.0
I
55.7(4)
(MMBoe)
Acreage (1)
183,472
92,415
47,937
31,135
54,797
120,832
7,398
537,986
2017E Production (1)
10.1
1.4
4.0
5.0
0.3
6.3
0.0
27.5(4)
(kboe/d)
Concession Term(1)(2)
2026
2034 / 2040
2025
2026
2038
2026(3)
2018(3)
(1) Based on Company information and Ministerio de Energía y Minería (Presidencia de la Nación).
(2) 10-year extension of conventional concessions available under Federal Hydrocarbon Law (with royalties increasing from 15% to 18%).
(3) 35-year new unconventional concession available under Federal Hydrocarbon Law (with 12% flat royalties).
(4) Includes reserves and production from Acambuco.
Important Note: projections, estimates, targets and goals are forward-looking statements and not guarantees of future performance. See "Important Note Regarding Projections and Other Forward-Looking
Statements."
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