Activity at Vaca Muerta Play

June-July 2021

Issued September 2021

G&G Energy Consultants - Daniel G. Gerold

Carabelas 235 – Piso 7 - Buenos Aires, C1009AAA – Argentina +54.11.4326.2806 +54.11.5238.2012
+54.11.5238.2013
1
daniel.gerold@ggenercon.com
 Economy continued with recovery in June and July –
Uncertainty before mid-term elections in November
may maintain recovery at current level
High export prices for agriculture
commodities contributed to recovery of
economy
Exports boomed during Q2 2021, allowing
for higher imports
Exports were USD 10.3 Bn higher in Jan-Jul
2021 compared to 2020, +31.5% growth
Expected reduction of growth rates
Domestic consumption lags recovery

Despite recovery, economic activity is

weak and did not grow in past ten years
Economic activity in July still remained -
1.2% below July 2019 – a bad economic
year -, despite improving from -2.1% in
May

2
Very strong recovery of industrial activity

Industrial activity in July was +0.5%

above July 2019, on a steady positive
trend
Growth of industrial activity compatible
with recovery in consumption of electricity
by this segment, which represented 27.0%
of overall demand of electricity in Jan-Jul
2021
Industrial goods exported increases +49%
in Jan-Jul 21 in addition to a +44%
increase of industrialized exports from
agriculture sector

3
Very strong surge in imports of energy in winter 2021
Exports of energy products in July were
+15.6% above July 2020, but -3.8% below
July 2019
Exports of energy products increased
+8.6% in Jan-Jul 21 compared to 2020 – a
modest variation considering very low
prices in 2020 -, totaling USD 2.28 Bn
Imports of energy products increased +76%
in Jan-Jul 21 compared to 2020 – explained
by higher prices and volumes -, totaling
USD 3.0 Bn
Argentine accumulated amount of energy
imports at USD 88.2 Bn since January 2009
until July 2021, despite large potential to
increase domestic output of oil, gas and
refined products

4
G&G Energy Consultants considers that companies in
Argentina may increase oil, gas, and power exports
contributing to enhance Balance of Trade, and Balance
of Payments by attracting new capital
• Investors in Energy Sector in Argentina could increase energy exports by a
net incremental USD 3 Bn per year in three year time after conditions are
set in place
• Additionally, imports of energy products may be reduced by USD 3.0 Bn
per year, provided a new gas pipeline is constructed to Central Argentina

5
Demand for diesel oil recovered
• Recovery in diesel oil demand in July after loosening of restrictions
• +25.2% y-o-y increase in demand of diesel oil in July 2021, +19.3% in June, +22.9%
in May
• +0.4% increase in demand of diesel oil in July 2021 compared to July 2019: -2.4%
in June and -2.4% in May, showing weakness in economic recovery
• +15.4% in Jan-July 2021 compared to same period in 2020 - lockdowns started on
May 20th, 2020 -; still -2.6% compared to Jan-July 2019
• Recovery started in in Q1 2021 with an year-on-year growth of +2.3%;
+26.6% in Q2 2021; +22.0% in July 2021

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Demand for gasolines remains impacted due to loss
of purchasing power by car drivers
• Recovery in gasolines demand in July after loosening of restrictions
• +46.0% y-o-y increase in demand of gasolines in July 2021, +29.8% in June,
+49.6% in May
• -6.5% reduction in demand of gasolines in July 2021 compared to July 2019: -
15.8% in June and -24.5% in May, showing a recovery path
• +27.4% in Jan-July 2021 compared to same period in 2020 - lockdowns started on
May 20th, 2020 -; still -10.7% compared to Jan-July 2019
• Recovery started in in Q1 2021 with an year-on-year growth of +2.9%;
+67.7% in Q2 2021; +46.0% in July 2021

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Recovery in domestic demand of main fuels,
increased crude oil demand by domestic refineries,
with prices lower than export parity
Refineries’ runs averaged 459,980 bopd in
June 2021 and 450,147 bopd in July, down
from 470,599 bopd in May after a
cracking unit at La Plata refinery and
topping and platforming units at Plaza
Huincul refinery, went into maintenance
Despite stoppage of the refining unit,
there was a +6.4% y-o-y increase in crude
oil runs in July 2021; +10.3% in June and
+32.4% in May
-3.3% reduction in July 2021 compared to
July 2019: +0.6% in June

+11.6% in Jan-July 2021 compared to

same period in 2020
Just -0.1% compared to Jan-July 2019

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Domestic prices lower than export parity

9
Main highlights on shale play operational
environment
• Purchases of oil by refiners is stable
• All crude oil and natural gas fields producing, though some wells San Jorge, Cuyo
and Neuquén basins temporary shut-down due to high water cut
• Domestic demand slowed pace of recovery
• Drilling maintained at main shale oil concessions, and at low level at
San Jorge basin
• Production normalized at large shale oil concessions, connecting DUC
and drilling new wells

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Main highlights on shale play operational
environment
• Increase in costs after new salaries agreed with Union
• Despite peak in fracking activity, a large inventory of DUC shale
wells remain as fracking crews are insufficient to cope with
inventory and new wells
• Now eight fracking crews available for shale play
• Halliburton 3
• Schlumberger 2
• Calfrac 1
• Weatherford 1
• Tenaris 1 (acquired from Baker Hughes)

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Crude oil, condensate and gasoline production
increased +8.6% y-o-y in July 2021, +5.9% in June
2021, and +12.6% in May 2021
• Extension of recovery, comparing against the worst months of 2020
• Expected slowdown in growth pace, as comparison will be with months of
reactivation of activity in 2020
• Reduction of -1.0% in Jan-July 2021 compared to same period in 2019,
despite record-high fracking activity of DUCs, and drilling
• +2.7% compared to Jan-July 2020

Production output averaged 529,782

bbls/d in July2021, -1.4% below highest
volume in recent years achieved in March
2020
Neuquen basin contributes with strong
increase in liquids output
Loss of oil, condensate and gasoline production
remains at -7,760 bbls/d compared to March 2020,
despite new wells connected

Recovery concentrated at Neuquén Basin, due to

new wells and concessions at full production
Austral basin still comparing with shut down of
fields in 2020 (resumption of production in 2020
started in September)
San Jorge basin moderated negative oil
production trend: -0.4% in July 2021 y-o-y; -2.1%
in June; -2.6% in May; -6.8% in April
Oil production still increasing month after month
compared to 2020 – Slower growth expected in
coming months

Current drilling activity has not recovered

yet pre pandemic level
Reduction in shale and tight gas drilling at
Neuquen basin, shifting to shale oil after
complying with production commitments
under Plan Gas.Ar
drilling activity Below potential at San
Jorge basin
Neuquén basin: oil, condensate and gasoline
increased a significant +17.8% in July and +13.4% in
June 2021 compared to more normal months of 2020
• Production output averaged 281,649 bbls/d in July 2021, with higher
monthly growth pace of +4.4% compared to June 2021
• Monthly growth +3.8% in January 2021 compared to December 2020; +2.6%
monthly growth in February; +2.9% in March; +0.8% in April; +0.5% in May; +1.1%
in June
Neuquén basin: oil, condensate and gasoline
increased +25.3% in April and +29.2% in May 2021
compared to very low months of 2020

• Neuquén basin expected to continue expanding oil production output

in coming months as Operators maintain a high level of fracking now
shifting to shale oil wells, and stable drilling mostly of shale oil wells
• However, production figures will start to compare to normalized months of Q3
and Q4 2020
• Despite intense fracking activity, we registers tens of shale oil DUCs,
and several active drilling rigs at shale oil pads in August-September
• Investment activity at Neuquén basin recovered to lower level than
pandemic outbreak in March 2020
• Reduction of investments in drilling of tight gas wells
Strong and steady increase in production at Neuquén
basin, fully based on shale oil production
July 2021 output at Neuquén basin at
281,649 bbls/d; 269,804 bbls/d in June and
266,854 bbls/d in May
Now +8.4% above peak output of March
2020
Probable moderate increase of oil output at
Neuquén basin in August and September, as
new wells are expected to be tied in by Shell
(after commissioning of second treatment
plant at Sierras Blancas), Vista, Pan American
Energy, and YPF

Drilling activity with twenty four active

rigs at Vaca Muerta play in August-
September 2021, according to our
review
Argentine gross production of gas +3.0% in July 2021
year-on-year, after 0.8% in June, averaging 130.7
MMm3/d at actual heat value
• Peak of gross production for 2020 was 126.8 MMm3/d in July, well
below 144.4 MMm3/d in July and August 2019
• Production ramped up in June, July, and August – preliminary data -
based on Neuquén basin new tight and shale gas wells
• As every winter, demand exceeds supply, with large volumes of
unsatisfied demand
Annual addition of gross gas production +3.9
MMm3/d in July; +1.0 MMm3/d in June
• Impressive loss of -17.4 MMm3/d in April 2021 compared to April
2019; -13.7 MMm3/d in July 2021 compared to July 2019, despite
recovery after Plan Gas.Ar
• Neuquén basin gross output averaged 85.5 MMm3/d in July with a
+8.3% increase compared to July 2020
• We estimate 92 MMm3/d at commercial standard of 9,300 kcal/m3
• Expected additions in August and September, in the order of 2 MMm3/d gross
Winter gas demand exceeded domestic supply by a
sizeable amount - Imports from Bolivia and
regasification of LNG at two terminals, did not satisfy
demand as hydroelectric output was the lowest ever
 Gross natural production in 2021 increased with
delays due to blockades in Neuquen during April 2021

Increase in gas production at Neuquén basin

reduced curtailments of supply to thermal power
generation and Industrial segments
No gas exports to Central Chile possible
Despite increases of production at Neuquen basin
and a second LNG regasification vessel, diesel oil,
and residual oil consumption increased in winter
2021
Diesel oil Jan-August 2021-2020: significant
+130%,
Y-o-Y increases in 2021: +95%, 75%, 171%,
5.586%, 4,339%, 340% increases compared to
January, February, March, April, May, June of
2020
-24% in July, and estimated +118% in August
Residual Oil Jan-August 2021: +76%
+71% higher consumption of coal
 Exports of gas to Chile expected to resume in
September - interruptible basis -, and in October in
firm Permits
• Gas exports from Austral basin interrupted since early April; exports from
Neuquén basin interrupted since February
• Gas exports averaged 3.7 MMm3/d in 2020, and 1.1 Mmm3/d in H1 2021
• Average 0.6 MMm3/d exported in July due to requirement by Chilean authorities due
to delays in an LNG cargo at Quintero Terminal, later returned to Argentina in late July
• 0.5 MMm3/d exported in August mainly explained by interruptible exports at the end
of the month
• Exports to resume from Austral and Neuquén basin by September-October 2021
 Lower imports of gas from Bolivia after renegotiation
of Gas Sales Contract

Significant reduction in imports of gas

from Bolivia in winter, counters off
additions of supply at Neuquen basin
14.7 MMm3/d in May 2021; 14.0
MMm3/d in June; 14.3 MMm3/d in July;
12.4 MMm3/d in August, due to
production problems at Bolivia’s largest
gas field
Average reduction at -23.7% (-4.3
MMm3/d)
-6.7% y-o-y reduction in May 2021; -22.5%
in June; -27.1% in July; -35.1% in August
Take-or-Pay obligation by IEASA in
September at 13 MMm3/d, and just 8
MMm3/d in October-December 2021;
Deliver-or-Pay at 13 and 10 MMm3/d
respectively
Renegotiation of Addenda to Gas Sales
Contract for 2022 already overdue
Higher imports of LNG with two terminals in
operations since May 2021

Sharp increase in regasified LNG since

March
Second terminal at Bahía Blanca
resumed operation in May by Excelerate
Energy
Average increase at +98.7% from May to
August 2021 (+12.9 MMm3/d)
+293% in May; +62.4% in June; +67.7% in
July; +150.6% in August
Bahia Blanca regasifying vessel left on
September 1st
New firm gas export permits assigned as of October
1st 2021

Export permits of gas to Chile,

unprecedented low level of
hydroelectric output at Northeast
and Neuquén dams, and exports of
electricity to Brazil will maintain
high demand for natural gas
 Gross gas output increased +8.3% y-o-y in July 2021
at Neuquén basin; +6.1% in June and +0.5% in May

• Shale gas output increased +28.8% y-

o-y in July 2021, accelerating after
+22.0% in June and +9.8% in May
• Tight gas output +0.9% in July 2021
at Neuquén basin; -0.7% in June and -
7.0% in May
• Conventional gas -11.0% in July
2021; -8.0% in June and -4.3% in May
 Gross gas output decreased -7.4% y-o-y in July 2021
at Austral basin, following reductions of -9.8% in
June and -7.4% in May

• Tight gas output averaged 3.3

MMm3/d at Austral basin, +13.8%
y-o-y increase in July 2021, under
development by CGC at Campo
Indio East and El Cerrito shallow
fields
 Gross gas output decreased -7.4% y-o-y in July 2021
at Austral basin, following reductions of -9.8% in
June and -7.4% in May

• Conventional gas -9.5% y-o-y reduction

in July 2021 (-2.8 MMm3/d) due to
natural decline at offshore fields
operated by TotalEnergies and ENAP
Sipetrol, in addition to other small
fields
• Conventional production averaged 26.5
MMm3/d in July 2021 at Austral basin
Pick up in number of wells connected in 2021 – 140 in
January-July, more than doubling 2020 total
• 21 additional new wells reported in June 2021
• 16 new wells reported in July 2021

SHALE WELLS DRILLED & COMPLETED YPF connected and reported 13

shale wells in June, and 12 in July
YEAR YPF OTHERS TOTAL
2011 20 2 22 Fracking activity maintained at high
2012 25 22 47 level, with important gains in
104 29
productivity expressed in number of
2013 133
stages per active day
2014 160 23 183
2015 178 22 200 Several DUCs connected by YPF in
August, mostly shale oil wells after
2016 103 17 120
winter rush for shale gas wells:
2017 64 45 109
2018 80 114 194
• 9 shale oil wells at La Amarga
Chica, associated with Petronas
2019 90 117 207

2020 37 37 74
• 9 shale oil wells at Loma La Lata
North (Loma Campana,
Jan-July 2021 66 74 140 associated with Chevron)
TOTAL 927 502 1429
• 2 dry shale gas wells at Rincón
del Mangrullo 29
Other Operators different from YPF also with high
investment activity at Vaca Muerta shale play in 2021

• Other Operators reported 76 new wells in 2021, higher than 66 by

YPF
• 8 wells reported in June 2021 by Operators different from YPF
• 4 wells reported in July 2021
• Active companies in 2021 with new wells connected, include Vista Oil
& Gas, Shell, PAE, Pluspetrol, Chevron, Tecpetrol, ExxonMobil and
Phoenix Global Resources
• TotalEnergies currently drilling
• Wintershall-DEA finished drilling four wells at Aguada Federal
associated with ConocoPhillips
• Pending fracking and connection, probably by Q1 2022

30
Operators maintain drilling and fracking activity –
Operators maintain tens of DUCs to frac, under
reduction explained by improvements in productivity

1,429 wells drilled, completed,

and/or worked over to Vaca
Muerta Fm.
Wells to Vaca Muerta as a
conventional reservoir at fields
at South of Mendoza not
included
Active drillers by September
2021: YPF, PAE, Shell, Vista,
Tecpetrol, TotalEnergies, Phoenix
G&G Energy Consultants expects
maintenance of current
investment activity until end of
2021

31
Active drilling rigs stable in August September - Our
count at 45 by September, with slight reduction

32
Active drilling rigs at Neuquén basin at 29 in August-
September 2021, including conventional oil, shale oil
and tight and shale gas

33
New peak in shale oil production in July 2021 at
161,362 bbls/d, 31.1% higher than March 2020

• Strong recovery in monthly growth rates to 6.2% over June 2021, after
2.9% in June, 0.2% in May, 2.0% in April, 5.0% in March
• Anticipated moderate increases in August and September, with lower monthly
growth rates
• Shale gas equivalent oil production 54.7% higher than shale oil output in
July 2021 and 49.0% in June, on an energy equivalent basis
• 41.5 MMm3/d in July (highest) and 38.5 MMm3/d in June at actual heat value,
further increases estimated for August (actual heat value ranging from 10,000 to
11,000 kcal/m3)

Gas converted at 6
mcf:1 boe, for
comparison
purposes;
conversion ratio is
not representative
of economic
equivalence

34
New peak in shale oil production in July, 38,311
bbls/d higher volume than March 2020 before crisis

• We expect higher output in August-September, as Shell connects DUCs

from its hub formed by concessions Cruz de Lorena-Sierras Blancas-
Coirón Amargo South West (CASO), with full operation at its new CPF
at Sierras Blancas
• YPF continues fracking and connecting DUCs at Loma Campana-
Bandurria South-La Amarga Chica hub, core of its oil production
• PAE connecting new wells at El Chañar development at Lindero
Atravesado concession; expected connection of DUCs at Coirón
Amargo South East (CASE)
• Vista expected to connect a new pad with four black shale oil wells in
September
• ExxonMobil expected to connect DUCs volatile shale oil wells at Bajo
del Choique concession during August-September
• We expect important production by each well, possibly limited by capacity of EPF
and oil transportation logistics to Oldelval system

35
418 MMboe produced from Vaca Muerta shale since
February 2011

• 43.9% of January-July 2021 production from Vaca Muerta hydrocarbons

output, is oil, condensate and gasoline recovered in plants at field sites
• 49.5% in 2017; 34.4% in 2018; 32.7% in 2019, and 39.3% in 2020, in a reversion of
downtrend of previous years
• Lower percentage in June and July at 40.2% and 39.3% as shale gas output
increased significantly to high level

36
Shale gas drilling backed sustained growth in shale
gas deliveries after reasonable wellhead prices
guaranteed by Plan Gas.Ar scheme

+17.2 MMm3/d added since

December 2020, in just seven
months and despite blockades in
April

Year-on-year increase of shale gas

production at 28.8% in July 2021, after
22.0% in June, 9.8% in May, -4.3% in
April, -10.2% in March, -18.2% in
February, -18.2% in January

37
Shale Gas output at 41.5 MMm3/d in July and 38.5
MMm3/d in June 2021, reflecting strong growth
with existing facilities
• 1,429 total wells drilled/worked over to Vaca Muerta play since 2010
• Active wells with shale gas reported at 1,103 in July 2021, increasing from 980 in
December 2020
• Our analysis concludes 384 wells were drilled with target of dry and wet
shale gas, and gas-condensate
• 287 of these wells were in production in July 2021 averaging 36.7 MMm3/d, 86.6%
of total gross shale gas production
• Impressive average production of 0.128 MMm3/d per active well

38
Blockades in April delayed to July the increase in
production planned for May
Gas output in July overpassed previous
maximum of winter 2019
Full development of Fortin de Piedra
explains part of new maximum output with
recovery completed in August according to
our unofficial data
Other contributors are YPF, Pluspetrol, and
PAE that increased 2019-2020 volumes
Campaign of workovers at El Orejano by
YPF-DOW with recovery of production; still
low number of wells in production
Development by YPF at Rincón del
Mangrullo and Aguada de la Arena, with
high productivity gas wells
Development by PAE-YPF-TotalEnergies at
Aguada Pichana Oeste-Aguada de Castro
Development of condensate and shale gas
at La Calera by Pluspetrol-YPF, peaking in
July and especially August
39
Higher production from wet shale gas wells and gas-
condensate shale wells
• Dry/Wet shale gas output 37.2 MMm3/d (89.8% of overall shale gas
output) in July 2021; 15.3 M Mm3/d net addition since December
2020, explaining most of the increase in output
• Associated gas to black and volatile shale oil output (4.3 MMm3/d in July and 4.4
MMm3/d in June) with slow growth as shale oil production expands (0.97
MMm3/d net addition since December 2020)
Wet shale gas and gas-condensate shale wells
irrupted in 2021 - Peak production in July and August
• Fortin de Piedra producing wet shale gas wells in breakthrough of
productivity; estimated maximum deliverability during August with
15.9 MMm3/d at actual heating value
• Estimated 17.6 MMm3/d at standard commercial heating value of 9,300
kcal/m3) during August
• ; one pad of three wells delivering a record high 2 MMm3/d; several pads
connected in June and July
Strong recovery by YPF based on shale gas
developments at Rincón del Mangrullo and Aguada
de la Arena
• YPF key shale gas developments in 2021 at Rincón del Mangrullo
and Aguada de la Arena, in addition to recovery at El Orejano
• Río Neuquen tight gas drilling was delayed by blockades; expected to come
on stream peaking in September
• YPF increased gross operated shale gas production by an
impressive 87.8% in July 2021 (+6.5 MMm3/d) compared to July
2020, after 62.6% y-o-y in June
• YPF operated 32.6% of gross shale gas output in July 2021,
averaging 13.8 MMm3/d at actual heating value, potentially with
slightly higher production in August with 14.6 MMm3/d
• Other Operators increased gross shale gas output +11.4% in July
2021 (+2.8 MMm3/d y-o-y)
Several producers increased shale gas output during
winter 2021, and tight gas to a minor extent

• Total associated with Wintershall DEA, YPF and PAE produced 44 out
of 46 wells completed at Aguada Pichana East, averaging 3.73
MMm3/d in July 2021 and 3.78 MMm3/d in June

New wells drilled with

one active rig
DUCs to start to be
connected since August
Production lower than
its peak in September
2020, -24.7% reduction
Good example of decline
of a field with sizeable
production, facing lack
of new wells connected

43
Fortín de Piedra reached 14.6 MMm3/d at actual
heat value in July 2021, with increase in August to
17.6 MM MMm3/d at commercial standard in
August, according with our estimate
• Estimated heating value of 10,260 kcal/m3; 16.1 MMm3/d at 9,300
kcal/m3 standard commercial heating value in July; 17.6 MMm3/d
projected for August
• Fortín de Piedra, main shale gas concession with 92 dry/wet shale gas
wells in effective production in August 2021, out of 96 completed
• TPT.Nq.FP-1256(h) – 2,500 mts lateral leg) is the best Vaca Muerta well ever
completed

Please refer to
outstanding production
of several new wells in
Annex

44
 Recovery of gas availability at El Orejano

• YPF associated with Dow, underwent a workover program to replace

piping and equipment after corrosion detected at several wells
• Shale gas production averaged 3.77 MMm3/d in July 2021 at El
Orejano, a recovery after 1.85 MMm3/d in July 2021 (minimum of 0.83
MMm3/d in January)
• Estimated heating value at 9,930 kcal/m3; thus, commercial output at 4.03
MMm3/d at 9,300 kcal/m3

No drilling expected by G&G Energy

Consultants at El Orejano, with
continuous workover activity and
sizeable investments to solve
integrity issues
Peak number of wells in production
at 65 in June and July 2019, when
El Orejano averaged 4.9 MMm3/d
at actual heat value
Only 28 active wells in production
in July and August

45
Gas output at maximum output in July at La Calera
with potential maximum level expected in August

• Pluspetrol associated with YPF had 24 active wells in effective

production in July, out of 27 drilled and completed (3 reported, pending
initial production) at La Calera,
• DUC wells pending fracking and connection to the system
• Shale gas production averaged 3.70 MMm3/d in July 2021, and 4.09
MMm3/d in August
• Estimated heating value at 11,300 kcal/m3; thus, commercial output at 4.45
MMm3/d at 9,300 kcal/m3 in July and 5.0 MMm3/d in August

46
Gas output at high level with new pad waiting for
connection, and DUC wells

• PAE and partners Total and YPF drilling continuously at very large
concessions Aguada Pichana West and Aguada de Castro
• The complex had 16 active wells in July 2021 out of 17 drilled and
completed
• Fourteen wells are horizontal

47
Shale gas drilling continues despite exceeding
production above committed volumes under Plan
Gas.Ar – Additional volumes sold to CAMMESA
• Shale gas output in July 2021 represented 31.7% of overall natural
gas gross production in Argentina
• Maximum share, recovering incremental trend lost in 2020
• Expected 33% in August, as supply from Northwest and Austral basins
continues to decline – stabilization at San Jorge basin after conventional
discovery by PAE at Chulengo field, west of Cerro Dragon complex

48
Shale gas is key at the Province of Neuquén

• Shale gas at 54.2% of gross gas production at Neuquén basin in July

2021, at highest level;
• Expected share to increase above 56% in August-September, despite increase
in tight gas supply from El Mangrullo, Sierra Chata and Río Neuquén
concessions
• Conventional gas production at Neuquén basin estimated at 23.7
MMm3/d in July, -11.0% annual decline (a loss of -2.9 MMm3/d)

Growing market share trend of

shale gas at Neuquén basin

49
 Tight gas output increased during July, probably
peaking in September due to some delays
• Tight gas share at Neuquén basin at 23.8
% in July, estimated at 20.3 MMm3/d,
+0.9% year-on-year
• Increase expected in August-September
• Important tight gas with condensate discovery
in Lajas Fm. by independent producer Capex
• Puesto Zuñiga x-2001 exploration well located
west of Loma Negra and eats of La Yesera
concessions, tested an average 150,915 m3/d
of gas and 289 bbls/d of condensate

50
Shale gas output diversified in several concessions
and Operators

51
Shale gas is a fast source of supply together with
tight gas, when and if conditions for investment
are reasonable as under Plan Gas.Ar

52
Sizeable fast growth in production at fields when
market/regulatory rules are respected

53
Shale oil wells by July 2021 – All operators
• 1,429 wells drilled/worked over/completed at Vaca Muerta play since
beginning of investments by YPF in 2010, as well as Madalena Energy,
APCO and Americas Petrogas in 2011
• 1,009 wells with oil/condensate production from Vaca Muerta reported active in
July 2021, +17.6% more than July 2020 (+151, showing connection of DUCs and
reactivation of some wells that were shut down last year)
• Some old vertical wells are shut down (we register numerous wells that
might be uneconomic)
• Producing wells are 70.6% of total wells completed
• Most dry shale gas wells do not report condensate production
• 698 of these producing wells were operated by YPF in July 2021 – 64
active wells more in one year -, and 311 by other Operators – 87 more
wells than July 2020
• G&G Energy Consultants projects higher output in August-September

54
161,362 bbls/d of shale oil output in July 2021
• 38.2% year-on-year growth rate for shale oil output, now comparing to
months with almost normal production in 2020
• Resumption of production at Loma Campana in June after partial reduction in
April and May
• +31.1% net increase in shale oil output in July 2021 compared to March 2020

55
Potential reduction of low-productivity wells at
certain black shale oil concessions
• Monthly variation increased in July; moderate increase projected for
August
 Shale oil/condensate output will continue to
increase until Q1 2022 according to our projections
• Shale oil drilling activity at Cruz de Lorena, Coirón Amargo Southwest,
Sierras Blancas, Aguada Cánepa, Coirón Amargo Southeast, Bajada del
Palo West, Lindero Atravesado, La Amarga Chica, Loma Campana,
Bandurria South, Aguada Federal, La Calera, Aguada del Chañar, Corralera
Northeast
• YPF’s operated shale oil production stood at 55.8% of total in July 2021 ,
averaging 90,050 bbls/d (+21.6% higher than July 2020), but stable in past
five months
• 0.5% higher than June 2021, which was -0.7% lower than May
• 90,960 bbls/d in August, extending plateau despite 18 new shale oil wells connected
in the month

57
44,596 bbls/d net y-o-y addition of shale oil in July
2021

• Conventional oil production decreased -1.7% y-o-y in July 2021

averaging 120,288 bbls/d (-2,112 bbls/d) at Neuquén basin, due to
some drilling at conventional oil concessions Medanito by PCR, Entre
Lomas by Vista Oil & Gas, and El Corcobo complex by Pluspetrol-YPF
• +2.1% monthly increase in July

58
YPF remains the largest shale oil operator despite
growth by several Operators

• YPF operated 69.2% of active producing shale wells with reported oil
and condensate production in July 2021, and 55.8% of shale oil output

59
July 2021 total shale oil output at 161,362 bbls/d,
strong increase over 151,975 bbls/d in June 2021
• Includes oil and condensate, and gasoline separated at facilities at fields
• Shale oil and condensate now represents 30.5% of overall oil output in
Argentina
• 57.3% of Neuquén basin production in July 2021
• A very relevant 79.0% of production at the province of Neuquén

60
Vaca Muerta liquids represent 79.0% of output at
the province of Neuquén, influencing tax collection
and payment of its large public debt
• Almost all shale oil is produced at the province of Neuquén, exception
made for few wells at the south of Mendoza by YPF and Phoenix Global
Resources
• High dependence of province of Neuquén on royalties from shale oil
and shale gas; strong improvement in 2021 after higher prices that
finance large increases of salaries to provincial state employees after
social blockades in April 2021

61
YPF remains the largest Operator of shale oil on Loma
Campana, Bandurria South, and La Amarga Chica
• YPF operated on its own and on behalf of Partners, 90,050 bbls/d
• YPF operates two of three largest shale oil concessions at Loma
Campana, La Amarga Chica and Bandurria South, all of which are
above 10,000 bbls/d
• Sizeable increase at Bajada del Palo West, positioned as the third largest
concession with 22,243 bbls/d; Sierras Blancas-Cruz de Lorena-CASO Complex
16,016 bbls/d will expand in next months

62
Summary

• 410,947 boe/d in July 2021, compared to 306,266 boe/d in July 2020

(+34.2%)
• Production output in July 2021 was again the highest, based on peak recovery of
shale gas output, and strong monthly increase in shale oil output
• +8.6% monthly increase in July 2021 over June, after +12.1% in June over May
• Gas represented 60.7% of total consolidated shale output in July (on an energy
equivalent basis 6 mcfg = 1 boe) compared to 70.2% in the peak gas production
of June-July 2019
• Anticipated higher deliveries from shale gas wells in August
• Sustained production growth until end of 2021 as gas demand is expected to
remain strong due to low hydroelectric output, and connection of DUC
• Anticipated moderate increase in shale oil production in August
• Independent Phoenix Global Resources drilling for volatile shale oil at
Corralera Noreste-1
• Independent Capex drilling for dry shale gas at Parva Negra West at
PNO x-3 well

63
Update on Tecpetrol
• Tecpetrol drilling with three rigs
• Several pads of two and three wells DUCs in process of fracking and connection
during next months to counter off decline from older wells
• Four new wells connected in August; two wet shale gas and two dry shale gas
• Latest pads drilled at northern limit with La Ribera I (wet shale gas),
and outstanding dry shale gas production achieved at pad connected
at west-center west close to the limit with Rincón del Mangrullo
• TPT.Nq.FP-1291(h); TPT.Nq.FP-1292(h); TPT.Nq.FP-1293(h), the best initial
production at Vaca Muerta play jointly producing 2.05 MMm3/d at actual
heating value on their fourth month
• 2,500 mts lateral leg and high-density completions 50 stages of frac
• New breakthrough in productivity, which could become a game-changer in
supply economics for winter demand
• TPT.Nq.FP-1256(h) – 2,500 mts lateral leg) averaged 911.385 m3 of
gas and 508 bbls of liquids per effective day in August after 4 months
in production, with theoretical accumulated production of 2.6 Bcf
• Tecpetrol may launch a volatile shale oil development project for Los
Toldos II East, if conditions for investment are suitable
64
Update on Tecpetrol

65
Update on TotalEnergies – Aguada Pichana East
• TotalEnergies drilling with one active rig since February 2021 at Aguada
Pichana East
• No drilling activity at Rincón La Ceniza-La Escalonada nor at San Roque concessions
• We register one pad of two wells (TAU.Nq.AP-1036(h) and TAU.Nq.AP-1038(h))
fracked in June with Schlumberger, probably connected in August-September
• Another pad of two wells under drilling; two additional pads of two wells each
drilled before end of 2021 and in production in Q1 2022

66
Update on Shell
• Shell drilling with two high-spec rigs and two spudders at Cruz de
Lorena-Sierras Blancas-Coirón Amargo Southwest cluster in August-
September 2021
• We identify 25-30 wells by July under fracking or waiting for fracking at CASO,
Cruz de Lorena, Sierras Blancas which we foresee will be connected since June
as the second Central Processing Facility starts operation
• Second CPF with nominal capacity at 30,000 bbls/d, in addition to first CPF of
10,000 bbls/d
• Shell will be the Operator adding more volume of shale oil in next three
quarters, according to G&G Energy consultants projections, probably achieving
40,000 bbls/d by Q1-Q2 2022
• A 100 km 16” oil pipeline under construction by Techint-Ingeniería Sima funded
by Shell (55%), PAE (30%), Pluspetrol (15%) to connect Sierras Blancas to Allen
reception tanks of Oldelval
• Some wells in two pads under production at Bajada de Añelo,
delivering gas to Loma Campana complex; pending decision by Shell-
YPF for development
• TGS gathers natural gas and transports it through Vaca Muerta North gas line
• Possible EPF under decision, targeting 12,000 bbl/d and 2 MMm3/d
67
Update on Pan American Energy
• PAE holds two drilling rigs at black shale oil development El Chañar
at Lindero Atravesado concession associated with YPF
• One rig delineating black shale oil concession Aguada Cánepa
associated with G&P
• One rig drilling for dry shale gas at Aguada Pichana West/Aguada de
Castro, associated with Total and YPF
• We identify several pads of black shale oil under fracking with
Calfrac, or waiting for fracking, mainly at Coirón Amargo Southwest
and El Chañar
• One pad of two black shale oil wells connected in June at El Chañar
• One pad of two dry shale gas wells connected in August at Aguada
Pichana West

68
 Update on Pan American Energy

• Outstanding well
PAE.Nq.APO-202(h)
producing 118,290 m3/d
after 35 months in
effective production
• Peak production at 550,329
m3 per effective day in its
third month of production;
theoretical accumulated
production at 11.3 Bcfg
• Wells Aguada Pichana
West 107(h) and 108(h)
connected in August
• APO 205(h) in its sixth month
of production, averaged
532,681 m3/d, after peak at
639,464 in June

69
Update on ExxonMobil – outstanding wells, limited by
offtake of liquids and constraints on facilities

• ExxonMobil finished rig drilling volatile shale oil wells at Bajo del
Choique
• The six wells from XOM.Nq.BdC-9(h) to XOM.Nq.BdC-14(h) started to
be connected for production in August
• Existing EPF will probably be at capacity with some new wells tested
in September
• Not all the wells may be produced at same time due to expected high
productivity, potentially breaking records if produced without
limitation of facilities

70
Update on Pampa Energia

• Dry shale gas exploration well at Sierra Chata 1004(h) associated with
ExxonMobil, in production
• 2,500 mts lateral leg
• Average production at 449,486 m3/d in August, with peak days close to
800,000 m3/d
• Several tight gas wells connected between June and August at El
Mangrullo
• El Mangrullo field maintains production output at 6.2 MMm3/d August
with outstanding production from tight gas wells from tertiary Agrio
Fm.(known as Pilmatué at this sector of the tight gas play)

71
 Update on Pampa Energia

• We identify eight tight gas

wells completed at El
Mangrullo, connected in
June-July-August
• Wells produce from
Mulichinco and Agrio Fms.,
several dual wells
• Well PAM.Nq M-1047
produced 307,548 m3 per
effective day in month 45,
accumulating 15 Bcfg
• Well PAM.Nq M-1064
produced 280,895 m3 per
effective day in month 41,
accumulating 17 Bcfg

72
Update on Vista Oil & Gas
• Vista producing shale oil from eight pads of four wells each
• Eighth pad connected in June
• Ninth pad to be connected in September

73
Update on Vista Oil & Gas
• Pads have different strategies of length, stages of fracking, navigation
zones – a third landing zone tested in two wells of pad #4 (Lower
Carbonate) -, distance among stages, testing for the best economic
return

74
Update on Vista Oil & Gas

• Wells reach a high volume of production in second-third month

75
Update on Vista Oil & Gas

76
Update on
Vista Oil & Gas

77
Update on Vista Oil & Gas
• Production at Aguila Mora suspended since March 2020
• plans to resume operation in Q4 2021 and drilling in 2022
• USD 32 million investment committed before end of 2022
• USD 52 million investment committed at Bajada del Palo East before end
of 2022

78
Update on Vista Oil & Gas
• Vista Oil & Gas announced it acquired ConocoPhillips’ corporate
vehicles in Argentina, owning 50% of Aguada Federal and 50% of
Bandurria North
• Vista assumes investment commitments under joint venture with
Wintershall DEA, equivalent to USD 77 million
• Vista received a loan from ConocoPhillips of USD 25 million for 24
months, at LIBOR plus 2%
• Vista does not make any payment to ConocoPhillips
• Vista has access to Cash Equivalent of USD 5.9 million with the
acquisition of corporate vehicles
• Vista accesses a net 25,231 acres, which will continue to be operated
by Wintershall DEA, with an implicit approximate value of 2,820
USD/acre at these black shale oil concessions

79
Update on Vista Oil & Gas

80
Update on Pluspetrol
• Outstanding production increases at La Calera in July-August, even
when four wells did not produce

81
Update on Pluspetrol
• Pluspetrol associated with YPF (50%) delivered 4.1 MMm3/d – with a
high heat value of 11,450 kcal/m3, equivalent to 5.0 MMm3/d at
standard commercial value of 9,300 kcal/m3) and 7,276 bbls/d in
August 2021
• Gas-condensate well PLU.Nq.LCa-3010(h) averaged 92,646 m3/d and 125 bbls/d
of condensate after 22 months of production, after peaking at 528,843 m3/d and
173 bbls/d of condensate at its fourth month

Gas-condensate well PLU.Nq.LCa-

3108(h) averaged 236,612 m3 per
effective day in production during
May 2021 and 1,061 bbls/d of
condensate in its fifth months of
production, after peaking at
291,194 m3/d and 1,326 bbls/d of
condensate at its third month
Theoretical accumulated
production of well La Calera
3010(h) at 5.47 Bcf and 200,730
bbls of condensate in twenty two
months
82
 Update on Pluspetrol
• Pluspetrol drilled several months with two rigs since November 2020 until
May 2021
• Ongoing contract for one set with Weatherford for fracking
• We identify Pluspetrol fracking DUC in an ongoing basis, potentially
requiring gas treatment with a new plant in the future, or agreements with
neighbor Operators at Loma La Lata, Tratayén, or Fortín de Piedra facilities
Five wells reported without initial production,
probably fracked but still in process of
connection to existing infrastructure:
• PLU.Nq.LCa-3096(h) and PLU.Nq.LCa-3097 (h),
while PLU.Nq.LCa-3095(h) of same pad at center-
east reported in its initial production in May
• Pad PLU.Nq.LCa-3155(h), PLU.Nq.LCa-3156(h) and
PLU.Nq.LCa-3157(h) at west-center west
Additional DUC in process of fracking and
connection:
• Pad PLU.Nq.LCa-3158(h), PLU.Nq.LCa-3159(h),
PLU.Nq.LCa-3160(h) at western limit with Aguada
Pichana East
• Pad PLU.Nq.LCa-3235(h), PLU.Nq.LCa-3236(h) at
west-southwest
• Pad PLU.Nq.LCa-3068(h), PLU.Nq.LCa-3069(h) and
PLU.Nq.LCa-3070(h) at northeastern limit with 83
Loma La Lata North at Loma Campana
Update on Wintershall DEA
• Wintershall DEA now associated Vista Oil & Gas (50%, after acquiring
ConocoPhillips corporate vehicles on September 16 th 2021) resumed
drilling in March at Aguada Federal
• One pad drilled with wells Aguada Federal-102 and Aguada Federal-
202
• Second pad of two wells AF-303 and AF-403 also drilled
• Completion and production expected for Q1 2022
• Six pilot shale oil wells drilled by Wintershall DEA and one by Gas y Petróleo del
Neuquén in early years
• Wells at Bandurria Norte delayed
• On pad with a three-well pilot drilled by Wintershall DEA in past years, and two
wells by YPF at then-known La Caverna area
• The well La Caverna x-1 drilled by YPF in 2009 led to an off-the-record
publication in local media of Neuquén, as the largest oil discovery in ten years
at the basin; the conventional exploration well at Quintuco Fm. led to further
investigation of this overlooked play

84
Update on Chevron
• Chevron resumed drilling of two pads at the north of El Trapial
concession
• One pad with wells CHA.Nq.ET.xp-2021st (required a sidetrack after change of
rig), CHA.Nq.ET-2022h, CHA.Nq.ET-2023h, CHA.Nq.ET-2024h, was connected in
November 2020
• Pad CHA.Nq.ET-2031h, CHA.Nq.ET-2032h, CHA.Nq.ET-2033h, CHA.Nq.ET-2034h
with wells reported but not in production yet
• Pad CHA.Nq.ET-2011h, CHA.Nq.ET-2012h, CHA.Nq.ET-2013h, CHA.Nq.ET-2014h
remains suspended after drilling vertical line
• Chevron is the largest investor different from YPF at Vaca Muerta play,
through its indirect participation of 50% at Loma Campana and 100% of
El Trapial exploitation concessions, and exploration concessions
Narambuena (50% associated with YPF) and 85% at Loma del Molle
Norte (G&P 15%)

85
Update on Phoenix Global Resources
• Phoenix Global Resources controlled by large trader Mercuria Energy
Group with 83.6% and publicly traded in London and Buenos Aires, has
two black shale oil wells in production at Mata Mora North (43,372
acres; 90% associated with G&P holding 10%)
• A potential development plan exists for black shale oil wells at Mata Mora North
probably starting by the end of 2021
• Phoenix Global Resources holds title at several unconventional
exploration concessions at Vaca Muerta play,
• Mata Mora Sur (11,918 acres; 90% with G&P 10%)
• Corralera Noreste, Corralera Sur and Corralera Noroeste, 90% with G&P 10%; two
wells to be drilled at the first two permits at wet shale gas/volatile oil window
• La Tropilla I, 90% with G&P 10%
• Santo Domingo I, 90% with G&P 10%
• Aguada de Castro Oeste I and II, 90% with G&P 10%
• Phoenix initiated drilling of Corralera Noreste x-1 exploration well at
northeast of El Trapial concession
• 2,000 lateral length horizontal section with 29 frac stages
86
Update on YPF – Rincòn del Mangrullo
• Rincón del Mangrullo: YPF’s more relevant addition of gas output in
2021
• Average shale gas produced in August with an impressive 4.59 MMm3/d
(actual heating value estimated in 10,150 kcal/m3), even when three
wells were shut down
• 21 shale gas wells on production in August 2021, out of 24 reported connected
• Two pads of three dry shale gas wells connected to existing infrastructure in May
2021, one of three wells in June, and one of two wells in August;
• Ten dry shale gas DUCs identified in three different pads: 224(h)-226(h)-229(h);
51(h)-55(h)-56(h); 130(h)-131(h)-132(h)-133(h)

87
Update on YPF – Rincón del Mangrullo

• No drilling or workover in tight gas wells

• YPF is associated with Pampa Energia with 50% each company at all
formations, excepting Vaca Muerta which is fully owned and funded
by YPF

88
Update on YPF – Rincón del Mangrullo
• We register one drilling rig active at pad 130(h)-131(h)-132(h)-133(h)

• YPF.Nq.RDMN-25(h)
averaged 563,373
m3/d at actual
heating value in
August
• YPF.Nq.RDMN-25(h)
located at the
norther border with
Aguada Pichana
West, accumulated
7.8 Bcf of gas in 26
months, averaging
170,029 m3 per
effective day in
August

89
Update on YPF – Aguada de la Arena
• YPF developed shale gas drilling at Aguada de la Arena since October
2020
• Average shale gas produced in August at 2.35 MMm3/d, even when
some wells were shut down: 11 shale gas wells on production in August
2021, out of 15 connected
• One pad of three dry shale gas wells connected to existing infrastructure in March
2021 and one in June;
• Four DUCs identified (1040(h), 1041(h), 1042(h), 1043(h))

90
 Update on YPF – Aguada de la Arena

• Pad of dry shale gas wells

YPF.Nq.AdlA-1031(h),
1032(h), and 1033(h)
produced 1.71 MMm3/d
(actual heating value of
10,400 kcal/m3) in August
2021, on their third month
• YPF.Nq.AdlA-1031(h)
averaged 603,238 m3/d
• YPF.Nq.AdlA-1001(h)
accumulated 8.5 Bcf of gas
in 37 months, averaging
163,532 m3 per effective
day in August
• Two pads with total of six
wells located at gas-
condensate area, with
relatively low yield of
liquids
91
Update on YPF – Aguada de la Arena
• Tight gas from Mulichinco Fm. declined -22% in August

92
YPF delineating Vaca Muerta plays at south and west
of this large concession
• Shale oil exploration well Lajas Este x-1(r)(h) – a re-entry
• Well located at east of Cupén Mahuida tight gas field; tested a maximum of 999
bbls/d of oil and 48,436 m3/d of associated gas
• Al Sur del Lago x-1(h) located at south of Loma La Lata concession
• Located close to Sierra Barrosa conventional oil and gas field; tested a maximum of
364 bbls/d of oil and 31,126 m3/d of associated gas
• Shale oil well Entre Lagos x-1(h) averaged 701 bbls/d of oil per effective
day in September, and 30,204 m3/d of gas
• Shale gas well YPF.Nq.LLLO.x-1(h) at west of Loma La Lata averaged
68,612 m3/d of gas and 22 bbls/d of condensate;
• YPF.Nq.LLLO.x-2(h) averaged 193 bbls/d of condensate per effective day in
September, and 216,438 m3/d of gas in initial 5 days of September 2019; a blowout
sparked a fire extinguished after 3 weeks
• YPF.Nq.LLLO.x-6(h) averaged 104 bbls/d of condensate per effective day in
September, and 84,269 m3/d of gas

93
YPF delineating Vaca Muerta plays at south and west
of this large concession
• Mirador de Barrosa x-1(h) tested a maximum of 19 bbls/d of condensate
per effective day, and 46,706 m3/d of gas
• Barreal Grande x-1(h) tested a maximum of 574 bbls/d of condensate per
effective day in September, and 16,883 m3/d of gas
• Five wells in production
• YPF.Nq.ELg.x-1; YPF.Nq.LajE.x-1; YPF.Nq.ASL.x-1(h); PF.Nq.MdB.x-1(h);
YPF.Nq.BaG.x-1(h)
• Wells properly located at Loma la Lata Oeste are shut in, probably due to
blow out of well LLLO x-2 in September 2019
• YPF.Nq.LLLO.x-1(h); YPF.Nq.LLLO.x-2(h); YPF.Nq.LLLO.x-6(h)

94
YPF delineating Vaca Muerta plays at south and west
of this large concession

95