Gas y Petróleo del Neuquén S.A.

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1 Gas y Petróleo del Neuquén S.A. THE DECISION TO GROW WITH ENERGY INVESTMENT OPPORTUNITIES IN THE OIL & GAS SECTOR IN NEUQUEN PROVINCE V Bidding Round Plan Nuevos Horizontes & Quarterly open Biddings under the Plan Exploratorio Neuquén April, 2017

2 Who we are GyP is a Company wholly owned by the Province of Neuquén GyP is a corporation under the control of Argentina Stock Exchange Market GyP acts as a private Company GyP operates directly and indirectly 9 concessions in Neuquén GyP in partnership with Exxon, Total, Shell and Wintershall participate in 4 unconventional oil & gas projects (currently in pilot stage) GyP in the last 4 years has generated to the Province US$ 214 MM

3 Our Partners

4 Oil & Gas Argentina Context Regulatory Oil fields belong to the Province in which they are located. Province grants exploration permits and exploitation concessions. Concession will be granted to GyP and transferred to contractor after completion of the committed Working Program Tax & Royalty system Neuquén royalty: 12% of gross commercial production G&P gets 10% equity in all new awarded contracts Carry system for exploration Neuquén Provincial Tax over Gross sales : 3 % All relinquished areas are transferred back to GyP Market Oil and Gas must be marketed internally until the country reaches self sufficiency. Gas exports are allowed under certain conditions (i.e. no buyers in local market). Local market prices are free but indirectly regulated by the Government. Minimum Local Oil price is set to 55 $/bbl. Oil imports are heavily regulated by the Government. Imports are only allowed if there is not local supply. Local average gas price is $4,5 mmbtu but in the case of new gas the Government pays an incentive (hedge) equal to the difference between local price and 7.5$ in 2018 ; 7US$ in 2019 ; 6.5US$ in 2020 and 6US$ in Unions: New Agreement in place providing more efficiency to operations. 5

5 Vaca Muerta Learning Curve Shale exploration wells drilled at Vaca Muerta formation by November 2016 Refined fluids assessment map elaborated by Undersecretary of Hydrocarbons of Neuquén of the Province of Neuquén 6

6 Current Situation The Province of Neuquén has outlined 165 blocks for the exploration, development and exploitation of hydrocarbons in its territory. There are various types of legal relationships over these blocks. Some come from the stage where the jurisdiction of granting rights was Federal and others, as of 2004, governed by the Provincial legislation. Concessions of Exploitation governed by Federal Law: Most of these Concessions expire in With right of extension (10-yrperiods). Concessions of Exploitation governed by Provincial Law: the Province granted concessions to several IOCs and GyP Areas reserved to GYP: As a general principle, under the Argentine Constitution, the Province has been granted the authority to grant concessions to third party. Thus, the Province of Neuquen created a provincial company: GyP, to hold exploratory and production rights over a significant portion of the Province. GyP has the authority to enter into contracts to promote the exploration and later exploitation of these blocks.

7 GyP Blocks Already under contracts 29 Exploration 17 Exploration & Exploitation 2 Exploit. Unconventional 6 Exploit. Conventional 4 AVAILABLE BLOCKS 56 V ROUND 6 PLAN EXPLORATORIO 50

8 Map of GyP Available Blocks V Bidding Round (6) Parva Negra Oeste Cerro Arena Sur Aguada de Castro Oeste I y II Las Tacanas Norte Bajo del Toro Este La Tropilla I Availables for quarterly offers under Plan Exploratorio Neuquén (50)

9 V Round - Bidding Terms Offers must be presented in two envelopes : Envelope A : Qualifications of the Company Envelope B : Work Commitment and Economic Terms All valid offers shall be submitted, without distinction, to the evaluation to be made through the weighting of the amount of investment and the amount offered for access to the block. The formula to be used to determine each offer's score will be the following: Where: P i : Score in WORK UNITs A i : Investment in WORK UNITs B i : Access Fee to the BLOCK P i = 0.3xA i + B i 5000 Procedure: GyP will select the offer with the highest P i value.

10 Plan Exploratorio Neuquén Quarterly open bidding Companies could submit offers every quarter for any block under certain conditions to be defined First opening :October 2017

11 V Round Contract Proposed Terms Working Interest: Contractor/s: 90 % G&P: 10 % Exploration Period: 7 years 1 st Sub-period: 3/4 years : Minimum work commitment: 1/2 horizontal Wells depending on the block 2 nd Sub-Period: 4 years : Pre-developpment project G&P investments during the Exploration Period to be covered in full by Contractor with no make up payment Exploitation period: 35 years + 10 year optional extension. Development and Exploitation cost: each Company pays their Participating Interest share. After a Commercial Discovery, G&P will have the right to either (i) retain the G&P Interest in the Exploitation Block, or (ii) convert the G&P Interest to a production fee equal to two and one-half percent (2.5%), of all Hydrocarbons produced from the Exploitation Block ( Production Sharing Payment ). Access to the Exploitation Period: Within thirty (30) Days after Company s declaration of a Commercial Discovery, Company will submit a proposed Exploitation Work Program for the development of the Exploitation Block during the Exploitation Period. A proposed Exploitation Work Program must include: a schedule setting forth for each year of the Exploitation Period the number of Horizontal Wells Company will drill and Complete within the Exploitation Block during such year; (b) Company s commitment to drill and Complete multiple Horizontal Wells in each year beginning with the first year of the Exploitation Period and continuing each year thereafter until full development of the Exploitation Block; and (c) details of all other activities to be performed by Company and investments to be made by Company during the Exploitation Period. Once the Exploitation Work Program is completed all Concession rights over the Exploitation block surfaces will be transferred to Contractor. Property of producing wells belong to each Party up to depletion of wells. Applicable Law: Argentina. Jurisdiction and Venue: Neuquén Province.

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13 THANKS