Agreement Between Petrolera Pampa and YPF for the Exploitation of Rincón del Mangrullo
Pampa Energía Announces an Agreement Between Its Subsidiary Petrolera Pampa and YPF for the Exploitation of Rincón del Mangrullo Block
Buenos Aires, November 6, 2013. Pampa Energía S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP “Pampa” or the “Company”) informs that today its subsidiary Petrolera Pampa has entered into an investment agreement with YPF S.A. (“YPF”) (the “Agreement”), in which Petrolera Pampa has committed to invest US$151.5 million in exchange of 50% of the hydrocarbons production resulting from Rincón del Mangrullo block (the “Block”), located in the province of Neuquén and corresponding to the Mulichinco geological formation. The local holding Grupo ST -led by Pablo Peralta and Roberto Dominguez- will hold direct or indirect share participation in this project along with Petrolera Pampa.
The Agreement is composed by two mandatory investment phases. During the first phase, Petrolera Pampa has committed to invest up to US$81.5 million in 3D seismic and the Block’s production development. Moreover, YPF will build the needed processing plant and gas pipelines to support the production. Once the first investment phase is finished, Petrolera Pampa has an option to continue to the second phase for up to US$70 million.
When the two mandatory phases are finished, the parties shall carry the necessary investments to develop the Block, in accordance with the respective share participations.
For further information, contact:
Ricardo Torres – Chief Executive Officer
Mariano Batistella – Special Projects Manager and Investor Relations Officer
Lida Wang – Special Projects and Investor Relations Associate
3302 Ortiz de Ocampo, Building #4
(C1425DSR) Ciudad Autónoma de Buenos Aires, Argentina
Phone: +54 (11) 4809 9500