Pampa Energia Enters Investment Agreement with YPF

Pampa Energia's subsidiary Petrolera Pampa S.A. ("PEPASA") has accepted an offer from YPF S.A. ("YPF") to enter into an investment agreement (the "Agreement") regarding the exploitation block known as "Rincon del Mangrullo" (the "Area"), which was formerly part of the Neuquen Basin Area IX, located in the Province of Neuquen and over which YPF holds an Exploitation Concession.

Subject to the fulfillment of certain conditions precedent and to the terms and conditions of the Agreement, in due course PEPASA will carry out investments in the Area up to a maximum of US$ 29,000,000 in exchange for the cession by YPF of certain rights and obligations, including the right over 50% of the hydrocarbon production obtained from the geological formations in the Area subject to the Agreement.

In addition, and subject to certain additional investments, PEPASA will have the option to acquire all or part of the natural gas production corresponding to YPF in accordance to its percentage participation in the Area.

One of Pampa's objectives in connection with this Agreement is to contribute to secure the supply of natural gas to Central Termica Loma de la Lata ("CTLLL"). The fulfillment of the Agreement, and the potential exercise of the option described above, could represent up to 11% of CTLLL's natural gas consumption.