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VACA MUERTA FIELD TRIP JUNE 2019
IMPORTANT
IMPORTANTNOTICE
NOTICE
Safe harbor statement under the US Private Securities Litigation Reform Act of 1995.
This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives of YPF and its management, including statements with respect to YPF’s
future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and
marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities,
ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as
future crude oil and other prices, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and
are subject to material risks, uncertainties, changes and other factors which may be beyond YPF’s control or may be difficult to predict.
YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production
and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies,
as well as actual future economic and other conditions, such as future crude oil and other prices, refining margins and exchange rates, could differ materially from those expressed or implied in any
such forward-looking statements. Important factors that could cause such differences include, but are not limited to, oil, gas and other price fluctuations, supply and demand levels, currency
fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical
risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks,
wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates with the Securities
and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-
F for the fiscal year ended December 31, 2018 filed with the US Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not
occur.
Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance,
conditions or events expressed or implied therein will not be realized.
These materials do not constitute an offer to sell or the solicitation of any offer to buy any securities of YPF S.A. in any jurisdiction. Securities may not be offered or sold in the United States absent
registration with the U.S. Securities and Exchange Commission or an exemption from such registration.
Cautionary Note to U.S. Investors — The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and
possible reserves that a company has determined in accordance with the SEC rules. We may use certain terms in this presentation, such as resources, that the SEC’s guidelines strictly prohibit us
from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-12102 available on the SEC website www.sec.gov.
Our estimates of EURs, included in our Development Costs, are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially
greater risk of being actually realized, particularly in areas or zones where there has been limited history. Actual locations drilled and quantities that may be ultimately recovered from our concessions
will differ substantially. Ultimate recoveries will be dependent upon numerous factors including actual encountered geological conditions and the impact of future oil and gas pricing.
2
AGENDA
01 INTRODUCTION
02 YPF SHALE ACTIVITY
03 SHALE OIL PROJECTS
04 INFRASTRUCTURE
05 MILESTONES & FUTURE CHALLENGES
3
VACA MUERTA STRATEGY
Achieve all these
objectives with the
Accelerate development activity highest standards in
in Loma Campana safety and sustainability
Replicate the success in La
Amarga Chica and Bandurria Sur
ACREAGE
(MM ACRES)
Expand the boundaries of
VM Acreage
Vaca Muerta oil through pilots 3.4
YPF Gross
2.7
Prepare next wave of developments YPF Net
1.7
1.3 1.2
Evaluate different alternatives to 0.7
unlock shale gas potential
Oil Gas
4
VACA MUERTA LEARNING CURVE
OIL PRODUCTION / DRILLING RIGS
70 OPTIMIZATION 30
Rigs - RHS Oil Production (Kbbl/d)
27 59
26 26
60 2525 25 25 25
242424 2424 24 2424 MIGRATION 25
23 23 TO
2222 22 HORIZONTAL
21 WELLS
50
191919191919 20
18
17
40 16
15 15 15
14 15
1313
30 12 121212 12
11 111111111111 11
1010 10 10 101010
9 9 9 9 9 9 9 10
8 8 8 8 8 8 8 8
20 7 7 7 7 7 7 7 7
6 6 6
5 5
4 4 5
10 3
0 0
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
5
REFERENCES
PBN
Exploration Operated VACA MUERTA ACTIVITY
Exploration & Pilots Non Op.
ChS PH Pilots
FMo Este
Development
N
BDT
LdM TOTAL PRODUCTION STRATEGIC
SDH PARTNERS
Operated Gross YPF (Avg. June 2019)
Mm3/d
CLMi
PY I
LaMa 61.4 Kbbl/d
Oil 9.6 Gas
CA San
EOR
PY
II
Roque OPERATED
ACTIVE WELLS
VM wells
720
June 2019
LACh
ADLA
BAñ 2019 CAPEX
~2bn
AdC BS
Operated
USD
APE Gross YPF
LC
LCa
APO
LRi I LLL Sur
Embalse
OPERATED
DRILLING RIGS (1) 17
RDM LRi II
LLL Embalse
June
MUSD
O (1) Include 1 Spudder Rig 2019
Cha MBE
Lindero
LTa Atravesado
LLL-SB
LLL-SB
AVi
AND
CBN
6
SHALE OIL AS OUR MAIN GROWTH DRIVER
SHALE OIL PRODUCTION SHALE OIL INVESTMENT
(Kbbl/d)* (MUSD)*
3500
350
3000
300
2500
250
2000
200
Net
YPF
Net 1500
150 YPF
100 1000
50 500
0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Operated Non-operated
* Strategic Plan 2018 7
AGENDA
01 INTRODUCTION
02 YPF SHALE ACTIVITY
03 SHALE OIL PROJECTS
04 INFRASTRUCTURE
05 MILESTONES & FUTURE CHALLENGES
8
VACA MUERTA VS. OTHER UNCONVENTIONAL RESOURCE PLAYS
Vaca Muerta Barnett Haynesville Marcellus Eagle Ford Wolfcamp
Desired
TOC (%) >2 3-10 4-5 0.5 - 4 2 - 12 3-5 3
Thickness (m) > 30 30-450 60 - 90 60 - 90 10 - 60 30 - 100 200 - 300
Reservoir Pressure (psi) High 4,500 - 9,500 3,000 – 4,000 7,000 – 12,000 2,000 – 5,500 4,500 – 8,500 4,600
9
EXPLORATION ACTIVITY IN VACA MUERTA
2018-19 Expansion
7 WELLS of Vaca Muerta
boundaries
84 743
WELLS MUSD
NET YPF
2012-17 Pilots: LAC, BS, Lri, BdA, PdY Payún Oeste
61 WELLS Initial development phase of LC and EOr
Start of shale gas exploration
ChSN Narambuena
Bajo del Toro
S. Huitrín Apon/La Banda
2011 Delineation of Loma Campana Cerro Avispa
Cerro Las Minas
Loma Amarilla
14 WELLS Expansion of shale oil window Pampa de las YeguasSan
I Roque
Cerro Arena
El Orejano
Exploration drills the 1º hz well (500 m) B. De Añelo La Amarga Chica
Aguada de Castro Bandurria Sur
REFERENCIA Aguada Pichana
Loma Campana
Horizontal exploration well La Calera La Ribera I
Vertical exploration well
2010 2007 – 2010 VM exploration block La Ribera II del
Rincón
Mata Mora
Exploitation NOC: Pilots Mangrullo
MBE Loma de la Lata Lindero Atravesado
2 WELLS Geological studies Exploitation NOC: Development
Las Tacanas
Shale Oil Window
Discovery of shale gas and shale oil Wet Gas Window
10
Dry Gas WindowYPF LEADING THE DEVELOPMENT IN VACA MUERTA
YPF AS SHALE
YPF AS OPERATOR(1)
PRODUCER IN
ARGENTINA (2)
250 100%
91% 89%
87% 86% 90%
78%
200
22
80%
70%
75%
23
59%
OIL
150 60%
53% 114
% Wells 100
29
17 41%
39%
50%
40%
26%
YPF
160
178 45 GAS
30%
# Wells
operated
by others 50 104 103 20%
22 80
64
# Well 10%
2
operated 25 11
20
by YPF 7
0 0%
2011 2012 2013 2014 2015 2016 2017 2018 2019
(1) Source: "Activity at Vaca Muerta Play" - February 2019 - G&G Energy Consultants - Daniel G. Gerold / (2) G&G Energy Consultants 11
11INVESTMENTS IN VACA MUERTA TOTALED ~9BUSD IN THE LAST 6 YEARS
GROSS OPERATED INVESTMENT VACA MUERTA
(IN MILLIONS OF USD)
DRILLING FACILITIES
2,109 ~2,000
1,981
382
320 ~500
1,398
1,175
330 1,099 1,083
120
169 119
1,662 1,727
~1,500
1,055 1,068 964
930
2013 2014 2015 2016 2017 2018 2019 E
12AGENDA
01 INTRODUCTION
02 YPF SHALE ACTIVITY
03 SHALE OIL PROJECTS
04 INFRASTRUCTURE
05 MILESTONES & FUTURE CHALLENGES
13PBN
CLUSTER OIL N°2 EXPANDING SHALE OIL BOUNDARIES
ChS PH
FMo Este
N
CLUSTER Loma Campana – Bandurria
BDT OIL N° 1 Sur – La Amarga Chica
SDH
LdM DEVELOPMENT
Future expansion to LLL Sur
CLMi
LaMa
PY I
CA San
EOR
Roque
CLUSTER Bajo del Toro –
PY
II
OIL N° 2 Narambuena – ChSN
CLUSTER OIL N°1
LACh
DELINEATION
Future expansion
BA
AdC ADLA
ñ BS to Las Manadas and
APE Puesto Hernandez
LC
LCa
APO
LRi I LLL Sur
CLUSTER Sierra Barrosa
Embalse
RDM LRi II
LLL Embalse OIL N° 3 Al Norte de la Dorsal
O
Cha MBE
Lindero
EXPLORATION
LTa
LLL-SB
LLL-SB
Atravesado Cerro Bandera
AVi
CBN
AND CLUSTER OIL N°3
14ACCELERATING OUR SHALE OIL DEVELOPMENTS
LOMA LA AMARGA BANDURRIA
CAMPANA CHICA SUR
2019 2019 2019
GROSS PRODUCTION (KBBL/D) GROSS PRODUCTION (KBBL/D) GROSS PRODUCTION (KBBL/D)
25
60 50.9 20.0 12 10.3
50 20 10
40 15 8
30 6
10
20 4
10 5
2
0 0 0
Jul-19
Apr-19
Oct-19
Jan-19
Feb-19
Mar-19
May-19
Jun-19
Aug-19
Sep-19
Nov-19
Dec-19
Jul-19
Apr-19
Oct-19
Jan-19
Feb-19
Mar-19
May-19
Jun-19
Aug-19
Sep-19
Nov-19
Dec-19
Jul-19
Apr-19
Oct-19
Jan-19
Feb-19
Mar-19
May-19
Jun-19
Aug-19
Sep-19
Nov-19
Dec-19
GROSS CAPEX 2019 GROSS CAPEX 2019 GROSS CAPEX 2019
~670 MUSD ~560 MUSD ~290 MUSD
RIGS Dic-19: 4 RIGS Dic-19: 4 RIGS Dic-19: 3
Full Field Development Full Field Development Full Field Development
Plateau (10 years) 100 kbbl/d Plateau (12 years) 65 kbbl/d Plateau (10 years) 58 kbbl/d
WELLS 1,488 WELLS 734 WELLS 578
GROSS CAPEX +15 BUSD GROSS CAPEX +7.5 BUSD GROSS CAPEX +6.7 BUSD
15PRODUCTIVITY IMPROVEMENT TIMELINE
LOMA CAMPANA LA AMARGA CHICA BANDURRIA SUR – SE ZONE
(KBbl) (KBbl) (KBbl)
375 Avg. Campaign 2016 375 Avg. Campaign 2016 375
2 wells
Avg. Campaign 2017 Avg. Campaign 2017
Avg. Campaign 2018 Avg. Campaign 2018
300 300 300
66 wells
37 wells 56 wells 9 wells
225 30 wells 225 225 2 wells
Avg. Campaign 2017
11 wells Avg. Campaign 2018
150 150 150
75 75 75
0 0 0
0 6 12 18 24 30 36 0 6 12 18 24 30 36 0 6 12 18 24 30 36
Months Months Months
EUR 905 kboe EUR 800 kboe EUR 980 kboe
2018 campaign 2018 campaign 2018 campaign 16COST IMPROVEMENT TIMELINE
DEVELOPMENT COST – HORIZONTAL WELL
(USD/BOE)
40
(1)
34 Loma Campana La Amarga Chica
35
30
25
20 19
20
15
15 18 12
15
10
11
9
5
0
2015 2016 2017 2018 Q1 2019
(1) Loma Campana development costs have been recalculated based on new information 17AGENDA
01 INTRODUCTION
02 YPF SHALE ACTIVITY
03 SHALE OIL PROJECTS
04 INFRASTRUCTURE
05 MILESTONES & FUTURE CHALLENGES
18BUILDING AN EFFICIENT PLATFORM TO FACILITATE OUR PRODUCTION GROWTH 2014 2015 2016 PSU-GAS PIPELINE RDM LLL LOGISTIC CENTER NOC OFFICE CONTROL ROOM PRODUCTION BATTERIES WATER NETWORK PROPPANT PLANT CONTROL ROOM DRILLING-GEOST
BUILDING AN EFFICIENT PLATFORM TO FACILITATE OUR PRODUCTION GROWTH
2017
2014 2018 2019 2020
BATTERIES
LOMA CAMPANA OIL LA AMARGA CHICA OIL BANDURRIA SUR OIL
LC-PELLEGRINI OIL PIPELINE 20
TREATMENT FACILITY TREATMENT FACILITY TREATMENT FACILITYOIL TREATMENT FACILITIES
2019 - 2020
LOMA CAMPANA
Loma Campana
Construction: Start-up: Expand current capacity
2014-2016 Dec-2016 to 113.2 kboe/d
Start-up: 4Q-2019
Capex: Current capacity:
MMUSD 200 62.9 kboe/d
La Amarga Chica
Main contractor: Construction: 2019
AESA Investment: MUSD 75
Start-up: 2Q-2020
• Blocks using the plant: Loma Campana, Capacity: 50.2 kboe/d
La Amarga Chica, Bandurria Sur and
Bajada de Añelo (operated by Shell)
• Dedicated control systems for process safety Bandurria Sur
• Control room Construction: 2020
• Possibility to operate remotely Investment: MUSD 75
Start-up: 2Q-2021
Capacity: 50.2 kboe/d
21LC – LP PIPELINE
MAIN CHARACTERISTICS
From:
Loma Campana crude treatment plant
To:
Pellegrini Lake refueling station PTC LC
(Medanito-Allen Oldelval pipeline)
Length: Diameter:
88 Km 18” CABO LLL
Transportation capacity: PLANTA
25,000 m3/d (157 Kbbl/d) PELLEGRI
NI
New pump station in Loma Campana
Simultaneous operation
to the current system
SCHEDULE
Construction:
CAPEX February 2018
Total: ~ 65 MUSD(1) Start-up:
PLANTA
CENTENARI
PLANTA
ALLEN
O
April 2019
(1) Includes taxes and others 22PROPPANT PLANT: CURRENT INFRASTRUCTURE & PLANNED EXPANSION
Initial investment:
150 MUSD
Current capacity:
360,000 tn/year
Expansion estimated for 2019
New capacity:
1,000,000 tn/year
Required investment
for expansion:
46 MUSD
23AGENDA
01 INTRODUCTION
02 YPF SHALE ACTIVITY
03 SHALE OIL PROJECTS
04 INFRASTRUCTURE
05 MILESTONES & FUTURE CHALLENGES
24INDUSTRIALIZATION + WORKING IN HUBS = EFFICIENCY, SINERGIES AND COST REDUCTIONS
FACTORY The goal is reducing well
MODEL construction costs and improving
productivity in a consistent manner
Seeks to industrialize
the production of
unconventional wells • Standardized designs and practices
• Repetitive execution of activities
• Learning curve acceleration
25LOMA CAMPANA EVOLUTION: KEY MILESTONES
2010-2011 2012-2014 2015 2016 2017 2018 2019
& Onwards
BATCH HIGH DISSOLVABLE PLUGS NEW TECH
DRILLING PERFORMACE RSS
MOTORS
FRAC: RIG LOCK /
HOT REFUELING
GEONAVEGATION
NEW GEN
SPUDDER
UBD + CWD DRLG. RIGS
PLUG & PERF RIGS
(WALK – SKID)
7500 PSI
CALIPER, PRESSURE RIGS
TEST AND ADMISION
RSS
# FIRST TEST (CPA SYSTEM)
HORIZONTAL MUD MOTORS SNUBBING
DRILLING
RIGS SOIL-2H UNIT
FACTORY MODE STRUCTURE
IDENTIFICATION
OF PAY ZONES
WITHIN VM FRAC BUNDLE CONTRACT
EXPLORATION PILOT + GROWTH INFRASTRUCTURE DEVELOPMENT FACTORY MODE DEV. COST FACTORY MODEL
RIGS: 01 RIGS: 05 RIGS: 05
26OPTIMIZING SAND AND WATER SUPPLY
LAST MILE FLEXIPIPES
SAND BOX
27SETTING THE BAR HIGHER
RATE OF PENETRATION (ROP) YTD Performance: 30 days
Last Pad: 27.5 days (LLL1564)
• 6 ¾” architecture Record: 26.1 days (SOil391)
• BHA design and new technologies
• Optimization support room
• Performance based contract incentives
• Flexible geo-navegation window DRILLING TIME (DAY/ WELL)
FLAT TIMES 31 ROP
Flat
times
• 6 ¾” architecture & casing run times
• BHA design and set-up times NPT ~23
• Backreaming
• Performance based contract incentives
NON-PRODUCTIVE TIME (NPT)
• BHA design and new technologies
• Diversify BHA providers
• Performance based contract incentives
• LEAN execution
2018 2020 E
AVERAGE
28FUTURE CHALLENGES
Increase activity while maintaining a safety track record
Replicate the success of Loma Campana in new developments
Confirm the productivity of new hubs
Plan for new developments in those new hubs
Keep the portfolio with optionality
Ensure evacuation of future production
Evaluate alternatives to unlock shale potential
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