Vaca Muerta Strategic Investment slide image

Vaca Muerta Strategic Investment

Vaca Muerta Shale Oil Opportunity (1/2) Favorable combination of value drivers 50,000+ Net Prime Acres Core Location in Shale Oil Window Pan American op NENERGY wintershall GyP YPF PETRONAS VISTAQIL & GAS Schlumberger YeF Chevron Prospective Area Bajada de Palo VISTAQIL & GAS 25 Coirón Amargo Sur Oeste Potential Best-in-Class Resource Properties (1) Ready for Full Scale Development ■ Completed pilots and ongoing development in adjacent blocks mitigate risk ■ Production performance in neighboring blocks supports Vista's type curve (2) ■ Operated infrastructure in place with spare capacity for initial development phase ■ Full discretion and flexibility on timing of Bajada del Palo development (90% of net acreage) ■ Top-notch operating partner in Coirón Amargo Sur Oeste (Shell), with significant Vaca Muerta experience (10% of net acreage) With the Most Experienced Management Team in Developing Vaca Muerta Drilled 500 wells across play (~70% of Vaca Muerta activity to date) (1) Delivered 47% well cost reduction Reached 50K boe/d, from zero(1) ✓ In-depth technical knowledge And Access to Riverstone's North America Shale Expertise Active in all major shale basins ~3.1 MM acres and ~300K boe/d(3) Bajada del Palo Core Permian (Wolfcamp) Eagle Ford TOC (%) 4.2 5.5 4.5 Leading E&P industry CEOs including Mark Papa and Jim Hackett Thickness (m) Pressure (psi/ft) 250 172 41 0.90 0.48 0.80 Target single well IRR > 75% (4) and target break-even price (5) of $35/bbl (1) Based on Company estimates and Ministerio de Energía y Minería (Presidencia de la Nación) and the EIA (2) Based on independent third party analysis on Company's acreage made by WDVG - Petroleum Engineering Laboratories. (3) Aggregate position including current and past investments. (4) Brent at strip for 2018 and 2019 as of 1/22/18 and $60/bbl flat in 2018 real terms from 2020 onwards; realized gas price of $4.6/mmbtu flat in real terms. (5) Based on a discounted cash flow project level valuation assuming $35/bbl flat in real terms and realized gas price of $4.6/mmbtu flat in real terms, and a 10% discount rate. 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." 8
View entire presentation