This document discusses the potential of Argentina's Vaca Muerta shale formation to become a major producer of oil and natural gas. It presents three scenarios for production growth from Vaca Muerta between now and 2040 based on different assumptions about investment levels and economic conditions. Under the base case scenario, Vaca Muerta could add 560 thousand barrels per day of oil and 6 billion cubic feet per day of natural gas by 2040, recovering over 2800 million barrels of oil and 33 trillion cubic feet of gas. For this level of production to be achieved would require annual investments of around $8 billion and sustained foreign investment. Production growth from Vaca Muerta would not be immediate and would depend on maintaining stable economic policies to encourage investment

1. © 2016 IHS
Presentation
ihs.com
IHS
Argentina Symposium
Will the Vaca Muerta be a game changer?
Latin America Upstream
Ricardo Bedregal , Senior Director, +55 21 3299 9936, Ricardo.Bedregal@ihsmarkit.com
26 July 2016
ENERGY

2. © 2016 IHS. ALL RIGHTS RESERVED.
Key Takeaways
Argentina Symposium – Vaca Muerta Potential
• Vaca Muerta production could add 560 Mb/d of liquids and 6 Bcf/d of
gas, recovering totaling 2800 MMbbl of liquids and 33 Tcf of gas by
2040.
• At peak drilling activity, Vaca Muerta would require annual investments
of approximately $8 billion per year.
• Gas prone areas are more attractive than oil prone areas.
• The pace and scale of development, and foreign investment, will be
dictated by aboveground conditions.
• Production growth will not occur overnight.

3. © 2016 IHS. ALL RIGHTS RESERVED.
The Vaca Muerta Formation: Widespread and offering
high potential
• Location map
3
• Vaca Muerta Formation covers
115,000 sq km of the Neuquen Basin
• Late Jurassic to early Cretaceous in
age
• Ranges in thickness from 100 m to
200 m over the most prospective
areas
• It is the source rock for over 13 billion
boe of conventional oil and gas
• Just over 600 wells drilled to date—
mostly in the YPF-operated Loma
Campana block
• Extent and quality of unconventional
sweet spots not clear at present
Area of most
licensing
Most drilling
activity
CHILE
Neuquén City
Argentina Symposium – Vaca Muerta Potential

4. © 2016 IHS. ALL RIGHTS RESERVED.
Modeling aboveground uncertainties, a scenario
approach
Argentina Symposium – Vaca Muerta Potential
• Base Case: Macri administration successfully implements key macroeconomic
reforms and those policies endure beyond his first term. As a result, YPF,
majors, foreign IOCs and independent E&Ps all gradually increase their
investment.
• High case: A game changer emerges. The main difference between the base
case and the high case, is that in the high case we assume that Vaca Muerta
production proves to be a globally competitive and thus the speed of investment
is accelerated resulting in faster ramp-up.
• Low Case: In this scenario, there are prominent boom bust cycles, which
impede investment decisions and increase risk aversion.

5. © 2016 IHS. ALL RIGHTS RESERVED.
From the Low to the High Case scenarios, improving aboveground
conditions is reflected in the pace of development
Argentina Symposium – Vaca Muerta Potential
Source: IHS © 2016 IHS

6. © 2016 IHS. ALL RIGHTS RESERVED.
Methodology—Vaca Muerta below ground potential
constrained by aboveground dynamics
Block
selection /
prioritization
Argentina Symposium – Vaca Muerta Potential
Type well
analysis
Development
concept
Economic
competitiveness
Market
demand
Bottom-up
approach
Top-down
constraints
Price
forecast
Vaca Muerta
oil and gas
production
outlooks
(low/base/high)
Government
policy
Source: IHS
© 2016 IHS

7. © 2016 IHS. ALL RIGHTS RESERVED.
Type curves reflect ongoing activity and results from
Vaca Muerta
Argentina Symposium – Vaca Muerta Potential
• Horizontal liquids type well based on 45
horizontal producing wells in Loma Campana
from Vaca Muerta Formation with historical
production greater than six months.
• Initial results from Aguada Pichana and El
Orejano horizontal wells suggest that well
productivity could be even higher than the Eagle
Ford West average type well.
Potential EUR:
~500 mboe
Potential EUR:
~800 mboe
Potential EUR:
~400 mboe0
200
400
600
800
1,000
1,200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Ave Eagle Ford Type Well Ave Loma Campana Fitted Type Well
SOil-178(h) Fitted Type Well Ave Loma Campana Historical
SOil-178(h) Historical
Light Oil Horizontal Type Wells
Notes: Potential EUR based on 35 years of production.
Source: IHS © 2016 IHS
Boe/d
Month
Potential EUR:
~1000 mboe
Potential EUR:
~1500 mboe
Potential
EUR:
~2000 mboe
0
200
400
600
800
1,000
1,200
1,400
1,600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Ave Eagle Ford West Type Well Ave El Orejano Fitted Type Well
Ave Aguada Pichana Fitted Type Well Ave El Orejano Historical
Ave Aguada Pichana Historical
Dry Gas Horizontal Type Wells
Notes: El Orejano and Aguada Pichana average based on 4 horizotal wells each.
Potential EUR based on 35 years of production.
Source: IHS © 2016 IHS
Boe/d
Month

8. © 2016 IHS. ALL RIGHTS RESERVED.
Project selection based on current development activity, capital
commitments, exploration activity, and proximity to infrastructure
Argentina Symposium – Vaca Muerta Potential
• Pilot duration (1–5 years, varies depending on block size)
• Drilling/completion
• Rig allocation varies depending on block size and accessibility
• Considers Vaca Muerta Formation depth & thickness
• Wellpad drilling
• Applies learning curve of 10%
• Modular production processing facilities
Source: IHS © 2016 IHS
Source: IHS © 2016 IHS
Basic development assumptions:

9. © 2016 IHS. ALL RIGHTS RESERVED.
0
1
2
3
4
5
6
7
8
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Dry Gas (EFW mean) 13MM Well Dry Gas (AP mean) 18MM Well
Vaca Muerta dry gas breakeven price range
Notes: Costs are in real 2016 US$; fiscount at 10%; Opex range $0.50–1.50/Mcfe;
average well cost reductions continue at 8% per year.
Source: IHS © 2016 IHS
$/Mcf
Year
0
20
40
60
80
100
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Light Oil (LC Mean) 13MM Well Light Oil (LC Highest) 18MM Well
Vaca Muerta light oil breakeven price range
© 2016 IHS
$/bbl
Year
Preliminary breakeven analysis suggests dry gas–prone
areas are currently more attractive than oil-prone areas
Argentina Symposium – Vaca Muerta Potential
• Based on current average Loma Campana well
productivity, oil breakeven prices are higher than
government-regulated price of US$67.50/bbl.
• Highest producing well in Loma Campana,
however, shows that there is the potential of
being economic.
• Based on current publicly available cost data
(ex., US$13MM, horizontal well 1000 meters
lateral length), and using EFW horizontal type
well, breakeven prices fall below the
government-regulated price of $7.50/MMBtu.
• Initial results from Aguada Pichana and El
Orejano horizontal wells indicate economics
could be even more attractive.
Most productive well
Loma Campana
Aguada Pichana average
well productivity
Notes: Costs are in real 2016 US$; discount at 10%; Opex $10/boe; average well
cost reductions continue at 8% per year.
Source: IHS

10. © 2016 IHS. ALL RIGHTS RESERVED.
Vaca Muerta liquids production could add 560 Mb/d of oil
by 2040, recovering 2800 MMbbl
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Low Base High
Vaca Muerta Liquids Production by Scenario
Notes: Boxes reflect the number of active operators
Source: IHS © 2016 IHS
Mb/d
Year

11. © 2016 IHS. ALL RIGHTS RESERVED.
We do not expect the Vaca Muerta ramp-up to be a repeat
of Eagle Ford even in the most optimistic scenario
Argentina Symposium – Vaca Muerta Potential
2
16
18
59
73
77
78
75
0
200
400
600
800
1,000
1,200
1,400
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Low Base High Eagle Ford
Vaca Muerta Liquids Production by Scenario
Notes: Boxes reflect the number of active operators
Source: IHS © 2016 IHS
Mb/d
Year

12. © 2016 IHS. ALL RIGHTS RESERVED.
In the Base Case, Vaca Muerta liquids production more
than offsets conventional declines by 2020
Argentina Symposium – Vaca Muerta Potential
0
100
200
300
400
500
600
700
800
900
1,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Base Production Low Base High
Argentina Liquids Production by Scenario
Source: IHS, Ministerio de Energía y Minería © 2016 IHS
Year
Mb/d

13. © 2016 IHS. ALL RIGHTS RESERVED.
Vaca Muerta gas production could add 150 MMcm/d of
gas by 2040, recovering 33 Tcf
Argentina Symposium – Vaca Muerta Potential
0
50
100
150
200
250
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Low Base High
Vaca Muerta Gas Production by Scenario
Notes: Gas production is net to market
Source: IHS, Ministerio de Energía y Minería © 2016 IHS
MMcm/d
Year

14. © 2016 IHS. ALL RIGHTS RESERVED.
In the base case, Vaca Muerta enables the country to
reduce its dependence on LNG imports in the 2020s
Argentina Symposium – Vaca Muerta Potential
0
50
100
150
200
250
300
0
50
100
150
200
250
300
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Base Production (+ Tight Gas) Low Base High Reference Demand
Argentina Gas Production by Scenario
Notes: Gas production is net to market
Source: IHS, Ministerio de Energía y Minería © 2016 IHS
MMcm/d
Year

15. © 2016 IHS. ALL RIGHTS RESERVED.
At peak drilling activity, Vaca Muerta could require
annual investments of ~$8Bn/y
Argentina Symposium – Vaca Muerta Potential
0
500
1,000
1,500
2,000
2,500
0
2,000
4,000
6,000
8,000
10,000
12,000
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
TotalEquivalentProduction(mboe/d)
Low (left) Base (left) High (left) Low (right) Base (right) High (right)
Vaca Muerta Drilling Capex and Production
Notes: Real 2016 USD
Source: IHS © 2016 IHS
TotalDrillingCapex(USDinmillions)
Year

16. © 2016 IHS. ALL RIGHTS RESERVED.
At peak drilling activity, Vaca Muerta dry gas & wet gas
blocks could require annual investments of ~$5Bn/yr.
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
TotalEquivalentProduction(mboe/d)
Gas Prone Areas (left) Liquid Prone Areas (left) Base (right)
Vaca Muerta Drilling Capex and Production (Base Case)
Notes: Real 2016 USD
Source: IHS © 2016 IHS
TotalDrillingCapex(USDinmillions)
Year

17. © 2016 IHS. ALL RIGHTS RESERVED.
Pace and scale of Vaca Muerta production growth has
important implications for the upstream service sector
Argentina Symposium – Vaca Muerta Potential
47
130
182
0
50
100
150
200
250
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Low Base High
Average Rig Count by Scenario
Notes: Historical rig counts have been estimated
Source: IHS © 2016 IHS
NumberofRigs
Year

18. © 2016 IHS. ALL RIGHTS RESERVED.
Base Case would require operators drill over 1000 wells
per year by 2023, rising to 1500 per year by 2040
Argentina Symposium – Vaca Muerta Potential
0
500
1,000
1,500
2,000
2,500
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Low Base High
Well Count by Scenario
Source: IHS, Ministry of Energy © 2016 IHS
NumberofWells
Year

19. © 2016 IHS. ALL RIGHTS RESERVED.
YPF, Exxon, Chevron, Total, and Shell together hold
about 60% of developed acreage in 2010–40
Argentina Symposium – Vaca Muerta Potential
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
YPFSA
ExxonMobilExplorationArgentinaSRL
ChevronArgentinaSRL
TotalAustralSA
Shell(O&GDevelopmentsLtd)
WintershallEnergiaSA
G&PNeuquenSAPEM
PanAmericanEnergyLLC
PluspetrolSA
PetroleraEntreLomasSA(PEL)
TecpetrolSA
SanJorgePetroleumSA
EOGResourcesInc
PetrobrasArgentinaSA
YSUREnergiaArgentinaSRL
PetronasE&PArgentinaSA
PetroleraPampaSA
MadalenaAustralSA
AEAQ
MedanitoSA
InternationalFinanceCorp
RochSA
AndesEnergiaArgentinaSA
KetsalSA&KilwerSA
DowQuimicaArgentinaSA
EnergiaArgentinaSA(ENARSA)
Operator (left axis) Partner (left axis) Cumulative % (right axis)
Base case - Developed acreage by player 2010–40
© 2016 IHS
Acreagesqkm
Notes: Cumulative area reflects 6.830 sq km drained in 2010–40 in Base case.
Source: IHS

20. © 2016 IHS. ALL RIGHTS RESERVED.
Where are we today?
Argentina Symposium – Vaca Muerta Potential
0
2
4
6
8
10
12
14
16
18
20
Nov-10
Feb-11
May-11
Aug-11
Nov-11
Feb-12
May-12
Aug-12
Nov-12
Feb-13
May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Vertical/Directional Horizontal
Historical Well Count by Type at Loma Campana
Source: IHS © 2016 IHS
NumberofWells
Month
0
2
4
6
8
10
12
14
16
18
20
Nov-10
Feb-11
May-11
Aug-11
Nov-11
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May-12
Aug-12
Nov-12
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May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Vertical/Directional Horizontal
Historical Well Count by Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
NumberofWells
Month
LightOilDryGas

21. © 2016 IHS. ALL RIGHTS RESERVED.
Recent trend shows higher IP’s for horizontal wells
Argentina Symposium – Vaca Muerta Potential
0
2
4
6
8
10
12
14
16
18
20
Nov-10
Feb-11
May-11
Aug-11
Nov-11
Feb-12
May-12
Aug-12
Nov-12
Feb-13
May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Vertical/Directional Horizontal
Historical Well Count by Type at Loma Campana
Source: IHS © 2016 IHS
NumberofWells
Month
0
2
4
6
8
10
12
14
16
18
20
Nov-10
Feb-11
May-11
Aug-11
Nov-11
Feb-12
May-12
Aug-12
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Feb-13
May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Vertical/Directional Horizontal
Historical Well Count by Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
NumberofWells
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well Ave IP Directional/Vertical
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well Ave IP Directional/Vertical
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas

22. © 2016 IHS. ALL RIGHTS RESERVED.
Taking a closer look at horizontal well breakeven prices
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
EUR - 390 mboe
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
EUR – 1540 mboe
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

23. © 2016 IHS. ALL RIGHTS RESERVED.
Assuming horizontal well costs between US$ 11-18 MM
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
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Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
EUR - 390 mboe
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
EUR – 1540 mboe
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

24. © 2016 IHS. ALL RIGHTS RESERVED.
What IP/Decline-Rate/EUR is needed to breakeven?
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
EUR - mboe
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

25. © 2016 IHS. ALL RIGHTS RESERVED.
What IP/Decline-Rate/EUR is needed to breakeven?
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
EUR - 390 mboe IP - 1050 boe/d
Decline Rate - 80%
EUR - 600 mboe
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe EUR_600mboe
Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

26. © 2016 IHS. ALL RIGHTS RESERVED.
What IP/Decline-Rate/EUR is needed to breakeven?
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
EUR - 390 mboe
IP - 1250 boe/d
Decline Rate - 68%
EUR - 1000 mboe
IP - 1050 boe/d
Decline Rate - 80%
EUR - 600 mboe
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe EUR_1000mboe
EUR_600mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

27. © 2016 IHS. ALL RIGHTS RESERVED.
What IP/Decline-Rate/EUR is needed to breakeven?
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
IP - 1250 boe/d
Decline Rate - 68%
IP - 1050 boe/d
Decline Rate - 80%
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe EUR_1000mboe
EUR_600mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
EUR - 1540 mboe
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

28. © 2016 IHS. ALL RIGHTS RESERVED.
What IP/Decline-Rate/EUR is needed to breakeven?
Argentina Symposium – Vaca Muerta Potential
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at Loma Campana
Source: IHS © 2016 IHS
boe/d
Month
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Ave IP Horizontal Well
Historical Trend in IP by Well Type at El Orejano and Aguada Pichana
Source: IHS © 2016 IHS
boe/d
Month
LightOilDryGas
IP - 660 boe/d
Decline Rate - 80%
IP - 1250 boe/d
Decline Rate - 68%
IP - 1050 boe/d
Decline Rate - 80%
0
20
40
60
80
100
120
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LC. Mean_EUR_390mboe EUR_1000mboe
EUR_600mboe Domestic Price
Light Oil Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
OilPrice$/bbl
Well Cost $MM
IP - 1332 boe/d
Decline rate – 62%
EUR - 1540 mboe
IP - 856 boe/d
Decline rate - 68%
EUR - 830 mboe
0
2
4
6
8
10
12
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
EOAP._Mean_EUR_1540mboe DryGas_830mboe
Domestic Price
Dry Gas Horizontal Well Breakeven Range
Source: IHS © 2016 IHS
GasPrice$/mmbtu
Well Cost $MM

29. © 2015 IHS. ALL RIGHTS RESERVED.
Questions?
Argentina Symposium – Vaca Muerta Potential