Pampa Energia and Petrobras Partner to Develop New Wells in Neuquen

Dec 09, 2010, 18:06 ET from Pampa Energia S.A.

BUENOS AIRES, Argentina, Dec. 9, 2010 /PRNewswire-FirstCall/ -- Pampa Energia S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP) ("Pampa" or the "Company") announces that, through its subsidiary Petrolera Pampa S.A., on December 7, 2010 has entered into an investment agreement with Petrobras Argentina S.A. ("Petrobras") for the "El Mangrullo" field located in the province of Neuquen, under which Pampa will acquire, subject to the fulfillment of certain conditions precedent, 43% of the right to freely dispose at wellhead, to commercialize and to process the hydrocarbons obtained from wells to be drilled in the field mentioned above (the "Wells").

As a consideration for said acquisition, Pampa has committed to invest up to US$ 16,000,000 on the drilling of those Wells.

The parties estimate to obtain a total natural gas production of 400,000 m3/day from the Wells under the Gas Plus Program, which will be allocated to the supply of Central Termica Loma de la Lata.

Moreover, the parties are negotiating a 400,000 m3/day Gas Plus contract, which is one of the yet-to-be-fulfilled conditions precedent to the investment agreement described above.

With this initiative, and those previously announced, the Company estimates that it has guaranteed the full gas supply of Central Termica Loma de la Lata.

For further information, please contact:

Ricardo Torres - Chief Executive Officer

Mariano Batistella - Investor Relations

3302 Ortiz de Ocampo, Building #4

(C1425DSR) Autonomous City of Buenos Aires, Argentina

Phone: +5411 4809 9500

SOURCE Pampa Energia S.A.