Petrobras, Pampa Energia team to develop El Mangrullo gas field in Neuquen, Argentina

Pampa Energia S.A. has entered into an investment agreement with Petrobras Argentina S.A. (NYSE:PBR) for the El Mangrullo field located in the province of Neuquen in Argentina.
Under the agreement, Pampa will acquire, subject to the fulfillment of certain conditions precedent, 43% of the right to freely dispose at wellhead, to commercialize and to process the hydrocarbons obtained from wells to be drilled in the El Mangrullo field. As a consideration for the acquisition, Pampa has committed to invest up to US $16 million on the drilling of those wells. 
The parties estimate to obtain a total natural gas production of 400,000 m3/day from the wells under the Gas Plus Program, which will be allocated to the supply of Central Termica Loma de la Lata. 
Moreover, the parties are negotiating a 400,000 m3/day Gas Plus contract, which is one of the yet-to-be-fulfilled conditions precedent to the investment agreement described above. 
With this initiative, and those previously announced, the Company estimates that it has guaranteed the full gas supply of Central Termica Loma de la Lata.
Source: Press release