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

• 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

Who we are

Our Partners

5

• Oil fields belong to the Province in which they arelocated.

• Province grants exploration permits and exploitationconcessions.

• Concession will be granted to GyP and transferred tocontractor after completion of the committedWorking Program

• Tax & Royalty system

− Neuquén royalty: 12% of gross commercialproduction

− G&P gets 10% equity in all new awardedcontracts Carry system for exploration

− Neuquén Provincial Tax over Gross sales : 3 %

• All relinquished areas are transferred back to GyP

Regulatory

• Oil and Gas must be marketed internally until thecountry reaches self sufficiency. Gas exports areallowed under certain conditions (i.e. no buyers inlocal market).

• Local market prices are free but indirectly regulatedby the Government. Minimum Local Oil price is setto 55 $/bbl.

• Oil imports are heavily regulated by theGovernment. Imports are only allowed if there isnot local supply.

• Local average gas price is $4,5 mmbtu but in thecase of “new gas” the Government pays anincentive (hedge) equal to the difference betweenlocal price and 7.5$ in 2018 ; 7US$ in 2019 ; 6.5US$in 2020 and 6US$ in 2021.

• Unions: New Agreement in place providing moreefficiency to operations.

Market

Oil & Gas Argentina Context

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

Vaca Muerta LearningCurve

• The Province of Neuquén has outlined 165 blocks for theexploration, development and exploitation of hydrocarbons in itsterritory.

• There are various types of legal relationships over these blocks.Some come from the stage where the jurisdiction of granting rightswas Federal and others, as of 2004, governed by the Provinciallegislation.

• Concessions of Exploitation governed by Federal Law: Most of these Concessions expire in 2027. With right of extension (10-yr-periods).

• Concessions of Exploitation governed by Provincial Law: theProvince granted concessions to several IOCs and GyP

• Areas reserved to GYP: As a general principle, under the ArgentineConstitution, the Province has been granted the authority to grantconcessions to third party. Thus, the Province of Neuquen createda provincial company: GyP, to hold exploratory and productionrights over a significant portion of the Province. GyP has theauthority to enter into contracts to promote the exploration andlater exploitation of these blocks.

Current Situation

Already under contracts 29

Exploration 17

Exploration & Exploitation 2

Exploit. Unconventional 6

Exploit. Conventional 4

AVAILABLE BLOCKS 56

V ROUND 6

PLAN EXPLORATORIO 50

GyP Blocks

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)

• 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 theweighting 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:

𝑃𝑖 = 0.3𝑥𝐴𝑖 + 𝐵𝑖

5000

Where: 𝑃𝑖: Score in WORK UNITs𝐴𝑖: Investment in WORK UNITs 𝐵𝑖: Access Fee to the BLOCK

• Procedure: GyP will select the offer with the highest 𝑷𝒊 value.

V Round - Bidding Terms

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

V Round Contract Proposed Terms

• Working Interest:– Contractor/s: 90 %– G&P: 10 %

• Exploration Period: 7 years– 1st Sub-period: 3/4 years : Minimum work commitment: 1/2 horizontal Wells depending on the block– 2nd 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.

THANKS