Pemex announced its first farmout in deepwater in Mexico; the main T&C of the JOA with Pemex, the contractual and fiscal terms are not yet revealed. Bidding guidelines to be published in July 2016.

The Board of Directors of our national oil company (Pemex) authorized the migration of its Entitlements No. AE0092-Belt Subsalt-1 and AE0093 Belt Subsalt-11 in deepwater in the Gulf of Mexico, which form together the block called "Trion". This means that Trion will not be developed by Pemex alone. This also means that Trion will be subject to an international bidding procedure, which will be called by Mexico's National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos) ("CNH"), so that the winner(s) become partner(s) of Pemex in a consortium, in order to perform a Contract for Exploration & Extraction of Hydrocarbons (the "CE&E").  No details have been shared yet by the Federal government as to (i) T&C for the Joint Operating Agreement between Pemex and the partners to be selected, (ii) the prequalification criteria to participate in the tender, and (iii) the T&C of the CE&E. It is foreseen that the Ministry of Energy (Secretaría de Energía) ("SENER") might establish bidding specifications quite similar to those of the Fourth Call of Round One (deepwater) currently in process.

Several technical information about Trion will be available at the National Center of Hydrocarbons Information (Centro Nacional de Información de Hidrocarburos) ("CNIH") of CNH. This info may be accessed through License of Use obtained from CNIH.

This project will be the first development of an oil field in deepwater in whole Mexico. Trion block depth is approximately 2,500 meters; located in the "Perdido" investment project in the Mexican part of the Gulf of Mexico. Trion was discovered in year 2012. Estimated 3P total reserves are approximately 485 Million barrels of crude oil equivalent to January 1st, 2016.

The minimum work plan of this project contemplates two delimiters wells, one exploratory well and the acquisition of 1,250 km2 of specialized 3D seismic (multi-azimuth).

The Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) ("SHCP") along with Pemex will define the economic variables for determining the winning bidder.

Pemex announced that in this farmout it will seek to JV with 3 partners, and that it is expected that this field generate investment of approximately USD$11 Billion within the next 15 years.

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