Pampa Energía announces the joint investment in new wells exploitation between its subsidiary Petrolera Pampa and Petrobras in the province of Neuquén, aiming to achieve 800,000 m3 per day of production
Buenos Aires, February 8, 2013. Pampa Energía S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP "Pampa" or the "Company") informs that Petrobras Argentina S.A. ("Petrobras") has accepted the business proposal from Pampa's subsidiary Petrolera Pampa S.A. ("PEPASA"), to jointly invest in "El Mangrullo" field located in the province of Neuquén, aiming to achieve 400,000 m3 per day of production level ("Plateau") for a period of 4 years.
In accordance to the business proposal's terms and conditions, PEPASA has committed to invest up to US$22 million for the drilling of 4 wells to achieve the Plateau. In return, PEPASA will acquire 43% of the rights to have free disposal at wellhead and commercialize the hydrocarbons resulting from the committed investments. Moreover, in the event of demanding additional drilling of wells to maintain the total production during said period (we estimate a maximum of 5 wells), PEPASA and Petrobras will pay the new wells costs proportionally to their corresponding participation.
Finally, we highlight that thanks to this proposal, which added to previous agreements between both parties, PEPASA and Petrobras will increase the hydrocarbons production in "El Mangrullo" block to 800,000 m3 per day, which will be commercialized under the Gas Plus Program framework.
For further information, contact:
Ricardo Torres - Chief Executive Officer
Mariano Batistella - Special Projects Manager and Investor Relations Officer