Shell Oil Gas

Sierras Blancas, Neuquén – Oil & Gas Development Ltd S.A. ("Shell Argentina") announced the decision to moveinto the development phase of the Sierras Blancas, Cruz de Lorena and Coiron Amargo Sur Oeste blocks, an Unconventional development in the Neuquen Vaca Muerta basins. This decision initiates full-scale developmentof oil and gas extraction area with a potential to deliver over 70 kboe/d by the mid-2020’s.

"Vaca Muerta makes up an important part of our global shale portfolio and we see substantial long-term growth potential there," said Andy Brown, Shell Upstream Director. "The selective development of acreage we consider advantaged is yet another milestone in the more than 100 years of uninterrupted activities Shell has enjoyed in Argentina.”

The first phase of development will consist of drilling and infrastructure expansion to increase production and processing capacity from the current 12 kboe/d to over 40 kboe/d in 2021. Full development of more than 70 kboe/d capacity will follow by the mid 2020’s, contingent upon performance and economic conditions.

"The preliminary results from our early production (pilot wells) in Vaca Muerta have been positive and compare favourably with our shale benchmarks”, said Shell Argentina's President, Sean Rooney. “I am particularly proud of our Argentinian team, which is delivering competitive results. I also look forward to further working with local communities in developing capacity and growing the talent pool in the Neuquén area."

Partners in these blocks are Gas y Petroleo de Neuquén (GyP) with a 10% interest in Sierras Blancas, Cruz de Lorena and Coiron Amargo Sur Oeste, and Vista Oil and Gas with a 10% interest in Coiron Amargo Sur Oeste.Shell Argentina holds a 90% interest in Sierras Blancas and Cruz de Lorena and 80% in Coiron Amargo Sur Oeste.

This investment decision reflects Shell's commitment to the energy and economic development in Argentina. Shell will continue to grow its investments in Unconventionals projects in Neuquén, for both operated and non-operated blocks.

Shell Upstream in Argentina

The Shell Group has operated in Argentina continuously since 1914, starting its hydrocarbon exploration and production activities in 1921. Our more recent Upstream history began in 2012, when we launched exploration and subsequently exploitation of Unconventionals petroleum and gas deposits in the Neuquen basin. Shell presently operates the Sierras Blancas, Cruz de Lorena, Coiron Amargo Sur Oeste and Bajada de Añelo blocks.In April 2014, we also acquired a percentage of two blocks operated by Total Austral S.A.: La Escalonada and Rincon La Ceniza. Vaca Muerta plays an important role in the portfolio of future opportunities for Shell.