0646 Round 3, Tender 1: Area 12, Burgos

Description: Shared production contract CNH-R03-L01-G-BG-07/2018 for the exploration of hydrocarbons in shallow waters, in an area of 811.3 km2 in the oil province of Burgos for the extraction of light oil and wet gas. Main Characteristics: - Geological province: Cuenca de Burgos - Age(s) of the play: Miocene - Lithology(s): Medium and coarse grained sand - Type of hydrocarbon: Light oil and wet gas - Prospective Resources of the Burgos Sector (of the 14 contractual areas): P90: 668 million barrels of crude oil equivalent (MMboe), P50: 3,002.3 MMboe and P10: 13,433 MMboe Production sharing contracts for the exploration and extraction of hydrocarbons may or may not generate income depending on the operator find commercially extractable resources in the assigned area. In the event that the operator finds and extracts hydrocarbons, it must pay the State the percentage of production that it offered in the Tender once its costs have been recovered. The State is a partner of the contractor. The considerations for the State are: 1. The Contract Fee for the Exploration Phase. 2. Royalties. 3. Operating Profit, which shares a percentage with investors. It is important to clarify that all the exploration risk is borne by the operator, that is, if the assigned operator does not find economically viable hydrocarbons to be extracted, the Mexican State would not pay anything. There are two possible extensions in the term of the contract subject to the area being in regular commercial production, the first extension of 5 years and a second extension for another 5 years. Prospective Resources: It is the volume of hydrocarbons estimated, at a certain date, from accumulations that have not yet been discovered but that have been inferred and that are estimated to be potentially recoverable, through the application of future development projects. These have both a chance of discovery and development, they are also subdivided according to the level of certainty associated with the recovery estimates: - P90: Low estimate of quantities, which with a 90% probability will be equal to or greater than said level . - P50: Best estimate of quantities, which with a 50% probability will be equal to or greater than said level. - P10: High estimate of quantities, which with a 10% probability will be equal to or greater than said level. Hydrocarbons Exploration/Production