Argentina O&G Overview Buenos Aires, March 9th 2016

Ernesto A. López Anadón President IAPG

IAPG - Argentine Oil & Gas Institute Overview

Oil & Gas Tecnical Institute Founded in 1957

Offices in all the producing basins Member of:

Main Activities: Technical Committees: more than 20 committees, 750 professionals, analysing improvements and developments of the O&G industry.

Best practices for the O&G industry.

Education & Training: 1200 professionals and technicians per year attend our courses.

NACE (National Association of Corrosion Engineers) training center.

Industry Statistics on production, processing and marketing.

Communication to the public of our activities.

Workshops and Congresses.

24 Basins

Only 6 under exploitation

Sedimentary Basins

0.0

100,000.0

200,000.0

300,000.0

400,000.0

500,000.0

600,000.0

700,000.0

800,000.0

900,000.0

1990

19

91

1992

19

93

1994

19

95

1996

19

97

1998

19

99

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

Comprobadas Petróleo (Mm3)

Comprobadas Gas (MMm3)

Proved Oil & Gas Reserves

Fuente: IAPG

Nat’l Gas Production Billions of cubic meters

Oil Production Millions of cubic meters

Oil & Gas Production

Drilling Activity Wells per year

Fuente: IAPG

1,050.0

1,100.0

1,150.0

1,200.0

1,250.0

1,300.0

1,350.0

1,400.0

1,450.0

1,500.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Pozos Terminados por Año

Drilled wells

68.981 Drilled wells

23.458 Oil productive wells

46.000 m3/d Gas per well

4 m3/día Oil per well

43 m3/día Water per well

2.564 Natural gas productive wells

Fuente: Secretaría de Energía de la Nación (2014)

Argentina Energy Demand

Coal 2% Nuclear 3%

(*) Estimado

Supply of Nat’l Gas

144 141 142 140 138 133 129 125 121 114 114 118

4 5 5 5 3 5 5 7 13 16 17 22 5 11 12 16 17 14

0 20 40 60 80

100 120 140 160 180

MM

m3/

día

Año

LNG BOLIVIA ARGENTINA

Import Prices

(*) Estimado

1.7 2.6

4.2 5.2

8.7

5.7

7.3

9.4

10.9 10.4 10.3

6.34

7.5

12.3

15.6 16.6

14.6

11.1

0

2

4

6

8

10

12

14

16

18

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

US$

/MM

btu

Año

Bolivia

LNG

Future Gas Demand

-

50

100

150

200

250

300

2014 2019 2024 2029 2034

MM

m3/

d

R+P USINAS INDUSTRIA + RTP GNC

Increase in Transport

Natural gas demand will reach 230 MMm3/d with a peak of 290 Mm3/d.

Up to 8000 km of new pipelines.

1.3 millons HP of incremental compression capacity.

Revamping of existing infrastructure.

Total investment in 20 years: up to 22.000 MMUSD.

Increase in Distribution

5.1 of new End Users (from 8 to 13 millions).

87.000 km of new distribution lines.

Reworks on internal installations.

Total investments in 20 years: 20.000 MUSD.

Increase in Power Generation

Around 40.000 MW will be incorporated into the system.

The incorporation of new CCGT will

increase the system flexibility allowing to install around 11.000 MW of renewables, representing

a 17% of the total generation.

Nuclear

Thermal

Hydro Wind

IAPG

*US Energy Information Agency 2013

802 TCF*

Shale gas estimated resources-Argentina

308 273 130 86 3

Chaco-paranaense

Vaca Muerta Los Molles Fueguina San Jorge

(TCF )

Comparison with giant “Loma La Lata"

308 TCF Vaca Muerta

10,8 Loma de la Lata

(TCF)

Vaca Muerta today

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

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PRODUCCIÓN SHALE OIL ARGENTINA - MES CALENDARIO

YPF

Otras Empresas

0.00.10.20.30.40.50.60.70.80.91.01.11.21.3

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MMm3/dPRODUCCIÓN DE SHALE GAS EN ARGENTINA

YPF Otras Empresas

Unconventional activity

Unconventional 4.43%

954 unconventional wells drilled as of 31st of December of 2015 583 shale O&G and 371 tight gas.

Production

Oil 93%

Gas 7%

Vaca Muerta today

91% vertical wells with five frac stages. Mostly shale oil

What would be required to reach 1000 drilled wells per year?

2013E

Wells Drilled 150 x7 1,000 12,000 1 year worth of wells

Drilling Rigs (# count) 20 x5 100 2,400 new equipement

Fracking Capacity (´000 HHP) 250 x4 890 500 new equipement

Frac Spreads (# count) 8 x3 22

Proppant (´000 tons/yr) 204 x9 1,879 850 1 year worth of supply

Water for Fracking (million m3/yr) 1 x10 10

in m/s 0.03 0.3

Capex (million US$)

1000 wells/yr

Thank you