Medanito SA

active

Oil and gas fields: The Company has 5 producing oil and gas fields (Aguada del Chivato, Aguada Bocarey, Cutral Co and Dos Picos and Medianera); and seven exploratory blocks in Neuquén and Rio Negro (Sierras Blancas, Loma Linda, La Tropilla I & II, La Via I & II, Puesto Roa, Aguila Mora and Tres Nidos Sur). Current average oil and gas production is 1,207 barrels per day (BPD) and 2,772 barrels of oil equivalent per day, respectively. Treatment plants: The Company owns and operates a gas treatment complex in Rio Negro Province (the “Catriel Gas Complex”), which includes: (i) a gas compression plant (with a capacity to process 1,400,000 m3/day), (ii) a LPG and gasoline plant (255 tonnes per day “Ton/D”), (iii) two gas sweetening plants (1,400,000 m3/day), and (iv) a network of feeding pipelines (78 km long). In addition, Medanito operates three small oil treating/storage facilities in Neuquén Province (1,100 BPD); and a small gas sweetening plant in Santa Cruz Province. Forestry: Medanito owns 1,000 hectares of poplar plantations (800 in Veinticinco de Mayo in La Pampa Province and 200 in Rincon de Los Sauces in Neuquén Province). The forestry unit is a relatively small scale business, which is not included in the capital expenditure program. Medanito has requested IFC to provide financing to partially fund its 2011-2013 capital expenditure program which includes: (i) drilling programs ; (ii) expansion of oil & gas processing and storage facilities within existing footprint; and (iii) oil & gas exploration activities.