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ENAP Farms-Out Five Magallanes Blocks

Tierra del Fuego, Chile

13 September 2011

Empresa Nacional del Petróleo, ENAP, and the companies Geopark, YPF and Wintershall, today presented Special Petroleum Operations Contract (CEOP, in Spanish) requests to the Ministry of Energy, concerning five exploration blocks in Magallanes Region.

- Isla Norte,
- Flamenco,
- Campanario,
- San Sebasti
- Marazzi-Lago Mercedes.

In the next months, this Secretary of State will define the awarding of these CEOPs.

In December 2010, ENAP initiated a farm out by means of which it invited international companies with large experience in exploration and exploitation of hydrocarbons.
The purpose of this invitation process, which concluded yesterday with the signature of participation agreements with the companies mentioned, is to accelerate the prospect and production of hydrocarbons in Magallanes, incorporating technical knowledge as well as lowering risks associated to this activity.
The potential subscription of the five CEOPs with the State of Chile in the areas mentioned above, will commit investments of at least US$ 145 million for the next three years.

Stellar acted as advisors to ENAP.