35-Year Extension in the El Mangrullo Block
Buenos Aires, June 5, 2018. Pampa Energía S.A. (‘Pampa’ or the ‘Company’; NYSE: PAM; BYMA: PAMP) informs that today the Company was granted a 35-year period extension to the operation of the El Mangrullo block for the development of unconventional gas (shale and tight), within the new exploitation license that Neuquén province granted to the Cutral Có and Plaza Huincul Inter-city Autonomous Body (‘ENIM’), which will come into force with the corresponding Provincial Order.
Currently, the El Mangrullo block is 100% developed by Pampa, is located in the mid-east of Neuquén province and accounts an area of 35,830 acres. Pampa produces natural gas from Mulichinco formation (compact sands or tight gas), with 41 productive wells and 97 million cubic feet per day. In consideration for the operation’s period extension, Pampa committed to disburse US$205 million for a pilot investment plan during the next 5 years, with the objective to continue developing Mulichinco formation by drilling 15 wells, in addition to 1 well targeting Tordillo formation and explore the potential of Vaca Muerta formation (shale gas), by drilling 3 additional horizontal wells. Moreover, Pampa paid an exploitation bond and a contribution to corporate social responsibility that amounts to US$15.4 million.
This project is in line with the Company’s strategy to focus its investments in the exploration and production of natural gas, with special focus on the development and exploitation of unconventional gas reserves at our blocks in Neuquina Basin.
For further information, please contact:
Gustavo Mariani – Vice-President
Ricardo Torres – Vice-President
Mariano Batistella – Planning, Strategy and Affiliates Executive Director
Lida Wang – Investor Relations Officer
The Pampa Energía Building
Maipú 1, (C1084ABA), Buenos Aires, Argentina
Phone: +54 (11) 4344 6000