Producing Energyfor a Prosperous Future

Core Business

EPI’s core business is the exploration and production of oil and gas in the upstream oil and gas sector. Currently, the Group has oil-producing assets in Argentina (the “Argentinian Assets”). The Argentinian Assets were acquired in 2009 and are located in the Puesto Pozo Cercado area and Chañares Herrados area at Cuyana Basin, which is approximately 50 kilometers south of Mendoza, the capital city of Mendoza Province in Argentina. It is at this Project Site that our ‘Mendoza Oilfield Project’ commenced in November 2009. As of December 31st, 2012, EPI has 10 oil wells that have been drilled at the Project Site.

The Mendoza Oilfield Project - Key Highlights

Project Area:Puesto Pozo Cercado area and Chañares Herrados area encompass 169 square kilometers and 40 square kilometers respectively.
Project Start Date:November 2009
Exploitation Rights:In July 2011, Chañares were granted an extension of their exploitation rights, which allow these EPI subsidiaries to explore for oil and gas at the Project Site until the year 2027. These exploitation rights are renewable when they become due in 2027.
Current Status:A total of 10 oil wells are in production. Out of these 10 oil wells, 5 were drilled by Have Result, for which EPI is entitled to a 51% interest on production. The other 5 oil wells were drilled by EP Energy, for which EPI is entitled to a 72% interest on production.
Production:100% oil

Exploration and Sales of Petroleum

The petroleum that is produced by EPI is sold to its customers Repsol-YPF at prices that are set by the Argentinian government.

During 2012, EPI has performed 7 workover jobs to the oil wells and has also invested in its own centralized well fluid collection tank and collection pipeline. The overall results of the 7 workover jobs are satisfactory as there was an increase in the initial production after the workover jobs were completed, which is better than expected.

EPI’s Oil Wells – Status of Production

Oil Well Status Depth (m) Date of production
CH – 1052 In production 3697 26 Nov 2009
CH – 1053 In production 3580 8 Dec 2009
CH – 1055 In production 3600 25 Mar 2010
CH – 25 bis In production 4685 12 May 2010
CH – 7 bis In production 4200 14 Aug 2010
CH – 1059 In production 3600 9 Jul 2011
CH – 1068 In production 3600 17 Aug 2011
CH – 1063 In production 3600 28 Sept 2011
CH – 1066 In production 3600 1 Jan 2012
CH – 1082 In production 3600 10 Jan 2012

The above chart provides key information regarding the date at which each of our oil well started producing petroleum. As shown in this chart, EPI’s first oil well CH-1052 started producing petroleum on November 26th, 2009. EPI’s most recent production is at oil well CH-1082, which started producing petroleum on January 10th, 2012.

EPI’s Oil Resources and Reserves

The contingent oil resources in certain shallow reservoirs of our Argentinian Assets are as follows:

Contingent Oil Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations t, but which are not yet considered mature enough for commercial development due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets.

The above EPI’s Oil Resources and Reserves Chart was assessed by Roma Oil and Mining Associated Limited as of 19 March 2013 from the Resource Estimation Review Report issued at the Project Site in the City of Mendoza, Mendoza Province, Argentina.

*Low Estimate of contingent resources = 1C
Best Estimate of contingent resources = 2C
High Estimate of contingent resources = 3C