New 35-Year Concession at the Sierra Chata Block
Buenos Aires, July 10, 2018. Pampa Energía S.A. (‘Pampa’ or the ‘Company’; NYSE: PAM; BYMA: PAMP) informs that today an Investment Agreement was executed with the Neuquén province, which will grant a new 35-year concession for unconventional hydrocarbon exploitation at the Sierra Chata block (the ‘Block’), aiming at the development of unconventional shale and tight gas in the Vaca Muerta and the Mulichinco formations, respectively.
The Block is located 93 miles northwest of Neuquén city and accounts an area of 213 thousand acres. Currently, the Block produces natural gas from the Mulichinco formation (compact sands or tight gas), with 69 productive wells and 45 million cubic feet of daily net production. Pampa is the operator of the Block and holds 45.6% stake, jointly with Mobil Argentina S.A. and Total Austral S.A. Argentina Branch, with a participation of 51.0% and 3.4%, respectively (the ‘Consortium’).
In consideration for obtaining the new concession, the Consortium committed to make an investment in the Block for an amount of US$520 million during the next 5 years (of which Pampa will contribute the corresponding amount according to its share participation), with the objective to continue developing the Mulichinco formation and explore the potential of the Vaca Muerta formation. Moreover, the Consortium disbursed an exploitation bond and a contribution to corporate social responsibility for US$30 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.
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