BUENOS AIRES, Aug. 1, 2017 /PRNewswire/ -- Pampa Energía S.A. ('Pampa' or the 'Company'; NYSE: PAM; BCBA: PAMP) announces that today YPF, the operator and licensee of Rincón del Mangrullo block (the 'Block'), reached an agreement with the authorities of Neuquén province to be granted an unconventional exploitation concession (the 'Agreement'). The Block is currently jointly developed with our oil and gas subsidiary Petrolera Pampa and holding 50% stake for each company.
In the Agreement, Neuquén province grants a 35-year period extension to the exploitation concession in exchange of a US$150 million investment commitment destined to an unconventional gas pilot program, which aims to further develop Mulichinco formation (tight gas) and explore the potential in Las Lajas (tight gas) and Vaca Muerta (shale gas) formations. Pampa, through Petrolera Pampa, only participates in the Block's tight gas development. Thus, 30% of the total amount corresponds to its investment commitment.
It is worth to highlight that for the first time horizontal wells will be drilled in the Block, a method that our partner YPF has plenty of experience and was picked up from the operation of other unconventional blocks in Neuquén.
The Rincón del Mangrullo block is located in the mid-east of Neuquén province and accounts an area of 183 km2. Since 2013 YPF and Petrolera Pampa has been developing the block, producing natural gas from Mulichinco formation as well as exploring the potential in Las Lajas formation. Currently 116 wells were drilled, producing 177 million cubic feet per day of unconventional gas.
For further information, contact:
Gustavo Mariani – Vice-President
Ricardo Torres – Vice-President
Mariano Batistella –Planning, Strategy and Affiliates Executive Director
Lida Wang – Investor Relations Officer
SOURCE Pampa Energia S.A.