Fracturing chemicals & water management 1. What is fracturing? 2. Fracturing chemicals for O&G 3. use of water in fracturing 4. Water use financials

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1 JANUARY 2013 Prepared by: Guillermo Suárez y Farías Jesús Terán 37, Circuito Diplomáticos Ciudad Satélite, Naucalpan de Juárez Estado de México gsuarezyfa@axtel.net Phone Cell

2 Executive summary Introduction & methodology Pemex E&P and CNH standing on shale play development: 1. Mexican Government position on shale basins 2. Mexican Eagle Ford basin development Legal Issues & Business Opportunities 1. U.S. Mexico transboundary agreements on water & hydrocarbons 2. Imminent Mexican Government opening of leases for private companies 3. Legal conflict between shale gas and coalbed methane resulting from overlapping basins Shale rocks: 1. Availability of technically recoverable O&G from shale rocks 2. Shale O&G geology & basins in Mexico extending from Eagle Ford in the U.S. 3. Overlapping shale & coal basins in the Sabinas Basin Fracturing chemicals & water management 1. What is fracturing? 2. Fracturing chemicals for O&G 3. use of water in fracturing 4. Water use financials Superficial and/or underground water 1.Availability of water supplies in large quantities 2. Availability of state-of-the-art water treatment systems Eagle Ford drilling financials 1. Well development costs 2. Production costs & break-even point 3. Henry Hub futures prices 4. U.S. DOC natural gas forecast to 2035 Human factors and regional development: benefits & hazards Conclusions Abbreviations Conversion factors 2

3 The development of shale gas fields in Mexico is a new activity that will be complementary to existing well-drilling operations at the Burgos Basin. In 2011 Mexico drilled the first shale rock well and has quite aggressive plans to develop new sites. The average cost for drilling and completion per well in the Eagle Ford area is between 5 to 7 million dollars and the break-even point for shale gas production ranges between 5.75 and 7.00 US$/MMBTU. However, the real profit-maker, especially in the Eagle Ford basin is the availability of liquids and oil, which in combination of at least 15% with natural gas are driving break even points down to 1.50 US$/MMBTU as in the case of Talisman Energy. However, Pemex does not have technology, expertise or manpower to exploit shale resources, and somehow this will soon lead to open new areas of opportunity for private investors. Pemex recognizes the need of private companies with expertise to do massive drilling in order to pull down extraction costs. By Law, in Mexico, gas, oil and liquids must be handed out to Pemex; but the real business opportunity is under the new Integral E&P Contracts (CIEP) program, which is already benefiting companies like Schlumberger, Halliburton and Weatherford. 3

4 Pemex has a program to drill 175 wells between 2012 and 2015 to evaluate prospective reserves, and it is quite probable that they will be developed under the CIEP program. Since shale deposits interbed with coal basins, there is a potential conflict of gas proprietorship since the Petroleum and Mining Laws grant coal mining companies rights of use for self-consumption and gathering. Eagle Ford Shale structures in Mexico are more complex, narrower and discontinuous than their counterparts in the U.S. (Texas and Louisiana). The targets in Mexico are sandstone reservoirs of Miocene and Pliocene age sourced from Jurassic (Tithonian) and Cretaceous-age shales. Due to the amounts of risked recoverable resources, the Eagle Ford and Tithonian shales at the Burgos Basin, hold the most important shale gas potential in Mexico. Since new drilling and production technologies have been developed in shale reservoirs throughout the U.S., the production of shale gas and oil is now economically feasible. 4

5 The amount of technically recoverable shale gas in Mexico is 700 TCF, against 862 TCF in the U.S. and 388 in Canada. The shale gas at Eagle Ford in Mexico is estimated to be 591 TCF; however, all numbers provided in this study are preliminary since a thorough resource valuation has to be developed with the aid of state-of-the-art geological surveillance techniques. 5

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7 Slide 2 Table of contents Slide 3 EXECUTIVE SUMMARY Slide 6 Index. Slide 22 INTRODUCTION & METHODOLOGY Slide 24 PEMEX E&P & CNH STANDING ON SHALE PLAY DEVELOPMENT Mexican Government position on shale basins Slide 25 Potential shale resources Slide 26 Emergente-1 the first shale gas well in Mexico Slide 27 Emergente-1 Drilling details Slide 28 Geological analogy of the Emergente-1 well and the Eagle Ford stratigraphy Slide 29 PEP shale gas drilling program Slide 31 Natural gas production scenario Slide 32 PEMEX E&P & CNH STANDING ON SHALE PLAY DEVELOPMENT Mexican Eagle Ford Basin Development Slide 33 Pemex started producing non-associated natural gas at Burgos 7

8 Slide 34 Burgos asset natural gas production Slide 35 Location of gas wells at the Burgos basin Slide 36 Gas wells at the Burgos basin identified through SPOT satellite images Slide 37 Optimization of artificial lifting systems in Burgos Slide 38 Optimization areas for the artificial lifting system for 750 wells in Burgos Slide 39 Landscape of the new areas of shale gas development Slide 40 LEGAL ISSUES & BUSINESS OPPORTUNITIES: 1. U.S. Mexico transboundary agreements on water and hydrocarbons Slide 41 Legal frame for hydrocarbons Slide 42 NAFTA transborder area for environmental protection Slide 44 U.S. Mexico transborder negotiations intermingle environmental, water and hydrocarbon issues Slide 46 LEGAL ISSUES & BUSINESS OPPORTUNITIES: 2. Imminent Mexican Government opening of leases for private companies Slide 47 The National Energy Strategy recognizes the need for leasing 8

9 Slide 48 Legal issues and business opportunities Slide 49 Legal frame as per the National Energy Strategy Slide 51 LEGAL ISSUES & BUSINESS OPPORTUNITIES: 3.Legal conflict between shale gas and coalbed methane (CBM) resulting from overlapping basins Slide 52 Controversies are foreseen due to the legal frame for shale gas and CBM Slide 53 Highlights from Article 27 of the Mexican Constitution Slide 54 Shale gas and coalbed methane legislation mining branch Slide 55 Shale gas and coalbed methane legislation petroleum branch Slide 56 CBM and shale gas extraction ownership conflicts are foreseen Slide 57 SHALE ROCKS: 1. Availability of technically recoverable gas and/or oil from existing shale rocks 9

10 Slide 58 Definition of shale (lutite) Slide 59 Characterization of shale Slide 62 Sequence stratigraphy of the Eagle Ford (Boquillas) Formation Slide 63 Type of rock at the Boquillas Fm Slide 64 Landscape at the Boquillas Fm Slide 65 Characteristics of the Eagle Ford basin in Mexico Slide 66 Makeup of productive shale formations Slide 67 SHALE ROCKS: Shale O&G geology and basins in Mexico extending from Eagle Ford in the U.S. Slide 68 Eagle Ford shale play Slide 69 The Southwest Texas Heavy Oil Province is located in the Maverick basin Slide 70 Time stratigraphic chart of the Upper Cretaceous units of the maverick basin and San Marcos arch. 10

11 Slide 72 The Anacacho and San Miguel formations in the Maverick basin Slide 73 Stratigraphic setting of the San Miguel formation and a series of marine dominated shorelines and wave dominated deltas Slide 74 The Olmos & Escondido formations in the Maverick basin Slide 75 Stratigraphic setting of the Olmos formation as a fluvial delatic system and associated shorelines Slide 76 North south cross section through eastern maverick county Slide 77 Identified gas resources in Mexico Slide 78 O&G basins in Mexico Slide 79 Regional structures affecting the continental crust of Mexico Slide 80 Shale basins at the Gulf of Mexico Slide 81 Transborder regional paleography of the Upper Cretaceous Slide 82 Geologic structure of Burgos Slide 83 The Eagle Ford basin is transborder between Mexico and USA Slide 84 The Eagle Ford basin gets into Mexico as an extension of the Maverick basin Slide 85 Maverick basin stratigraphy 11

12 Slide 86 Maverick basin stratigraphy and focus in O&G Slide 87 Northwest southwest cross section through the Maverick basin Slide 88 Jurassic and Cretaceous stratigraphic units in southern and eastern Texas Slide 89 Definition of the Burgos Integral Asset Slide 90 Burgos basin boundaries Slide 91 Definition of the Burgos Integral Asset Slide 92 Burgos basin boundaries Slide 95 Geology of the Burgos basin within the Burgos Asset Slide 96 Geology of the Burgos basin Slide 97 Burgos basin boundaries Slide 98 Geological origin of the Eagle Ford and Burgos basins Slide 99 Cross section of the stratigraphy of the western border of the Burgos basin Slide 100 Stratigraphy of the Burgos basin Slide 101 Geology of the Burgos basin Slide 102 A A transversal view of the Burgos basin geology Slide 104 The Eagle Ford basin in northeastern Mexico 12

13 Slide 105 The Sabinas basin in northeastern Mexico Slide 107 Landscape of Sabinas Slide 108 Geology of La Casita formation Slide 109 Geology of La Casita formation Cross section Slide 110 Geology of La Casita formation La Popa basin Slide 111 Sabinas basin boundaries Burgos province Slide 112 Profile of the Forastero 1 well Slide 113 Sabinas basin boundaries Peninsula de Tamaulipas and Isla de Coahuila Slide 116 Correlation between the Cuatro Cienegas and El Oro blocks Slide 117 Coahuila state geology Slide 118 Location of towns and mountain ranges in Coahuila Slide 119 State of Coahuila geologic profile Slide 120 Tamaulipas state geology Slide 121 Location of towns and mountain ranges in Tamaulipas Slide 122 State of Tamaulipas geologic profile Slide 123 Types of soil at the Zone II from the Burgos basin 13

14 Slide 126 Nuevo Leon state Geology Slide 127 Landscape of the Aramberri area in the state of Nuevo Leon Slide 128 Location of towns and mountain ranges in Nuevo Leon Slide 129 State of Nuevo Leon geologic profile Slide 130 SHALE ROCKS: Overlap of shale and coal basins in the Sabinas basin Slide 131 The origin of the Maverick basin explains coal deposit structures in Coahuila Slide 132 Maverick basin geology 115 million years ago Slide 134 Location of the main coal deposits in Mexico Slide 135 The Eagle Ford basin runs towards northeastern Mexico Slide 136 Location of the main coal deposits in Mexico Slide 138 Coahuila coal deposits Slide 139 Geologic characteristics of coal deposits in Coahuila Slide 140 Coal deposits in Sabinas Monclova 14

15 Slide 141 FRACTURING CHEMICALS & WATER MANAGEMENT: 1. What is fracturing? Slide 143 Eagle Ford shale well boring Slide 144 Eagle Ford hydraulic fracturing Slide 145 Fracturing process in the production of shale gas Slide 146 Types of fracturing guns Slide 147 Use of fracturing guns Slide 148 CT Express Rig Up Slide 149 Well drilling through Multiple Service Contracts at the Burgos basin Slide 150 Well drilling and natural gas processing by Pemex Slide 151 FRACTURING CHEMICALS & WATER MANAGEMENT: 2. Fracturing chemicals for oil and gas Slide 152 Typical Eagle Ford fracturing fluid makeup 15

16 Slide 157 Fracturing chemicals cocktail composition Slide 154 Typical Eagle Ford fracturing fluid makeup Slide 158 Common Fracturing chemicals used at Eagle Ford (shale gas) Slide 159 Common Fracturing chemicals used at Eagle Ford (shale oil) Slide 160 FRACTURING CHEMICALS & WATER MANAGEMENT: 3. Use of water in fracturing Slide 161 Water use in deep shale gas exploration Slide 162 Water is needed in the production of shale gas Slide 163 Hydraulic fracturing and groundwater protection Slide 164 The use of water for shale gas is lower against other fuels Slide 165 FRACTURING CHEMICALS & WATER MANAGEMENT: 4. Water use financials Slide 166 Water management economics in the development and production of shale resources 16

17 Slide 167 Key factors involved in water management at Eagle Ford Slide 169 Water management segments in the development and production of shale resources involved in costing Slide 170 SUPERFICIAL AND/OR GROUNDWATER: 1. Availability of water supplies in large quantities Slide 171 Eagle Ford field development needs are well covered by water flows at the Rio Grande Slide 175 Intermontane water basins in the Trans Pecos region of western Texas and northern Chihuahua Slide 176 Water basins in western Texas and northern Chihuahua Slide 177 U.S. Mexico shared transborder aquifers Slide 179 Water basins in western Texas and northern Chihuahua Slide 181 U.S. Mexico shared transborder aquifers Slide 182 U.S. Mexico bi-national water bodies Slide 183 U.S. Mexico shared transborder aquifers and legal issues 17

18 Slide 185 U..S. Mexico transboundary aquifers under international law Slide 186 Characteristics of dams on the Mexican side of the Rio Grande Slide 187 Mexican groundwater in the Eagle Ford area Slide 188 Coahuila state rivers and water bodies Slide 189 Hydrologic regions in Coahuila and Nuevo Leon Slide 190 Hydrologic regions in Tamaulipas Slide 191 SUPERFICIAL AND/OR GROUNDWATER: 2. Availability of state-of-the-art water treatment systems Slide 192 Water treatment issues Slide 194 Schlumberger aquifer storage and recovery in fracturing operations Slide 196 Chesapeake s Aqua Renew program Slide 197 Intervras Technologies Slide 198 Ecologix integrated treatment systems for oil drilling and fracturing operations 18

19 Slide 199 EAGLE FORD DRILLING FINANCIALS: 1. Well development costs Slide 200 Financial provisions in Mexico will use analogies with the U.S. Slide 201 Eagle Ford drilling and completion impact (2010) Slide 202 Costs for drilling at Eagle Ford Slide 206 EAGLE FORD DRILLING FINANCIALS : 2. Production costs and break-even point Slide 207 Eagle Ford shale extraction of oil and gas impact (2010) Slide 208 Break even point for Eagle Ford shale wells Slide 209 Break even point considerations for Talisman Energy Eagle Ford shale wells Slide 210 The break even point for Talisman Energy turned out to be lower Slide 211 Baker Institute break even point for shale gas Slide 212 Eagle Ford shale impact outlook in Texas

20 Slide 215 EAGLE FORD DRILLING FINANCIALS: 3. Henry Hub futures prices Slide 216 Henry hub natural gas prices are the reference in the Mexican price formula Slide 217 Henry Hub natural gas prices tend to remain low in Slide 218 Natural gas price differentials against LPG, diesel and heavy fuel oil are the key drivers to switch fuels in Mexico Slide 219 EAGLE FORD DRILLING FINANCIALS: 4. U.S. DOE natural gas price forecasts to 2035 Slide 220 Natural gas prices depend on availability Slide 222 HUMAN FACTORS & REGIONAL DEVELOPMENT: benefits and hazards 20

21 Slide 223 Human factors and regional development Slide 224 The impact of Eagle Ford is reflected in the creation of jobs and increased salaries Slide 225 Permanent and temporary indirect jobs associated with drilling operations Slide 226 The payment of leases on the Mexican side can be compared to acquisition of Rights-of-Way Slide 227 Managing risks of shale basin development Slide 229 CONCLUSIONS Slide 232 ABBREVIATIONS Slide 234 CONVERSION FACTORS 21

22 JANUARY 2013 Prepared by: Guillermo Suárez y Farías Jesús Terán 37, Circuito Diplomáticos Ciudad Satélite, Naucalpan de Juárez Estado de México gsuarezyfa@axtel.net Phone Cell

23 Foreground The present annex was prepared to deepen in some of the technical aspects needed to evaluate hydrocarbon exploitation potentials in the Eagle Ford basin extension into northern Mexico. The analysis was made by analyzing the whole basin areas in Coahuila, Nuevo León and Tamaulipas. The analysis continued describing the geology, physiography, topography, lithology, Total Organic Contents (TOC), porosity and vitrinite reflectances (R o ), as well as secondary well re-fracturing at Burgos. For the well log analysis at both, the Sabinas and the Burgos Basins, representative producing wells were used to illustrate hydrocarbon production potentials and underground structures. Introduction The slides are organized in three main sections according to their geographic location within the Eagle Ford shale basin: 1) The development of the Burgos Integral Project, 2) Sabinas and 3) Burgos. In each section a number of locations were chosen to show the geographic and geologic technical variables under study. The chosen areas of study include the largest amount of information available to this date covering most of the surface area comprising the Burgos and the Sabinas basins as extensions of Eagle Ford into Mexico. 2

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25 Major Sections Slide 2 Foreground & Introduction Slide 16 Section 1. Burgos Integral Project Development Slide 24 Section 2. Overall Eagle Ford Area Analysis in Mexico Slide 45 Section 3. Sabinas Basin Slide 101 Well logs at the Sabinas Basin Slide 114 Section 4. Burgos Basin Slide 141 Well logs at the Burgos Basin 4

26 Slide 2 Foreground Slide16 Section 1. Burgos Integral Project Development Slide 17 Pemex Forecast Program of studies & exploratory wells Slide 18 Development areas of the Burgos Integral Project (BIP) Slide 19 Areas included in the Integral Burgos Basin development plan Slide 20 Development plan of the BIP Slide 21 Alternatives to develop the BIP Slide 22 The Burgos Integral Project Slide 23 Expected hydrocarbons production under alternative 1 Slide 24 Section 2. Overall Eagle Ford area analysis in Mexico Slide 25 Geologic map of the Gulf of Sabinas & the Burgos Basin Slide 26 Geologic history of Coahuila Nuevo León and Tamaulipas Slide 27 The North American & Caribbean plates gave rise to the Sea of Tethys Slide 28 Plate distribution around the world Slide 29 Paleography of the Upper Jurassic in Northern Mexico Slide 30 Physiography in Coahuila, Nuevo León and Tamaulipas Slide 31 Geologic history of Coahuila, Nuevo León and Tamaulipas 5

27 Slide 32 Paleography from the Oxfordian Upper Kimmerigdian Slide 33 Paleography from the Upper Kimmreigdian Tithonian Slide 34 Paleography from the Berriasiano Valanginian Slide 35 Paleography from the Upper Neocomian Slide 36 Paleography from the Albian Cenomanian Slide 37 Paleography from the Turonian Slide 38 Paleography from the Campanian Maastrichtian Slide 39 The Río Bravo fault, Chihuahua, Coahuila, Nuevo León & Tamaulipas Slide 40 The Río Bravo fault map Slide 41 The Río Bravo fault provinces Slide 42 The Río Bravo fault depocenters Slide 43 Gravimetric map of the Río Bravo fault Slide 44 Topography of the Río Bravo fault Slide 45 Section 3. Sabinas Basin Slide 46 Towns in and around the Sabinas and Burgos basins Slide 47 Main towns in northern Coahuila Slide 48 Regions and hydrologic basins in northern Coahuila Slide 49 Water bodies in northern Coahuila 6

28 Slide 50 Allende Piedras Negras aquifer in Northern Coahuila Slide 51 Physiography in northern Coahuila Slide 52 Allende Piedras Negras aquifer in Northern Coahuila physiography & climate Slide 53 Allende Piedras Negras aquifer in Northern Coahuila hydrography and geomorphology Slide 54 Geology in northern Coahuila Slide 55 Sites analyzed in the state of Coahuila Slide 56 Geologic column of Muzquiz, Coahuila Slide 57 Geology of the Allende Piedras Negras aquifer in northern Coahuila Slide 58 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous: GlenRose & Telephone Fm Slide 59 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous (El Burro Reef Complex: West Nueces Fm) Slide 60 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous (El Burro Reef Complex: McKnight & Salmon Peak Fm) 7

29 Slide 61 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous: Upper Devil s River & Del Río Fm Slide 62 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous: Buda, Eagle Ford & Austin Fm Slide 63 Geology of the Allende Piedras Negras aquifer in northern Coahuila Lower Cretaceous: San Miguel, Olmos, Río Escondido Fm Slide 65 The Allende Piedras Negras aquifer: Map Slide 66 Main towns in central Coahuila Slide 67 Regions and hydrologic basins in southern Coahuila Slide 68 Water bodies in southern Coahuila Slide 69 Castaños aquifer in central Coahuila Slide 70 Physiography in southern Coahuila Slide 71 Geologic column in Monclova, Coahuila Slide 72 Stratigraphic correlations between Coahuila basins Slide 73 Physiographic provinces of Monclova Slide 74 Eagle Ford erosion in Monclova, Coahuila Slide 75 Eagle Ford topography in Monclova Coahuila 8

30 Slide 76 Physiography and climate in southern Coahuila Slide 77 Hydrography and geomorphology in southern Coahuila Slide 78 Castaños aquifer in southern Coahuila Slide 79 Geology in southern Coahuila Slide 80 Geology at the Castaños aquifer in southern Coahuila Slide 81 Stratigraphy at Castaños and Monclova, Coahuila: Patula & Cupido Fm Slide 82 Stratigraphy at Castaños and Monclova, Coahuila: La Peña, Aurora & Kiamichi Fm Slide 83 Stratigraphy at Castaños and Monclova, Coahuila: The Washita Group: Georgetown & Del Río Fm Slide 84 Castaños aquifer geology in southern Coahuila Slide 85 Stratigraphy at Castaños and Monclova, Coahuila: The Washita Group: Buda, Eagle Ford & Austin Fm Slide 86 Stratigraphy at Castaños and Monclova, Coahuila: The Sabinas conglomerates & quaternary alluvium Slide 87 Physiography in northern Nuevo León Slide 88 Regions and hydrologic basins in northern Nuevo León 9

31 Slide 89 Water bodies in northern Nuevo León Slide 90 Geology in Nuevo León Slide 91 Geology of Coahuila & Nuevo León Slide 92 Geology of Coahuila and Nuevo León. Geologic column Valladares chart Slide 93 Geology of Coahuila & Nuevo León. La Peña & Aurora Fm shale outcrops Slide 94 Geology of Coahuila & Nuevo León. Kiamichi Fm shale outcrops Slide 95 Geology of Coahuila & Nuevo León. Stratigraphy: The Washita Group: Georgetown, Del Río & Buda Fm Slide 96 Geology of Coahuila & Nuevo León. Stratigraphy: Eagle Ford Formation Slide 97 Geology of Coahuila & Nuevo León. Stratigraphy: Austin, Upson & San Miguel Fm Slide 98 Geology of Coahuila & Nuevo León. Stratigraphy: Olmos Fm Slide 99 Slide Geology of Coahuila & Nuevo León. Stratigraphy: Physicochemical characteristics of coal at the Olmos Fm 10

32 Slide 100 Geology of Coahuila, Nuevo León & Tamaulipas: Paleotectonic map of northeastern Mexico Slide 101 Well logs at the Sabinas Basin & Coahuila Slide102 PEP has already discovered shale gas reserves through the Emergente 1 well Slide103 Likewise, PEP has already detected oil traces at the Montañés 1 well Slide104 La Casita, Padilla and La Virgen plays at the Sabinas Basin Slide105 Vitrinite reflectance at Sabinas Slide106 Sabinas Basin plays Slide 107 Ethane C 13 isotopes at the Sabinas Basin Slide 108 Sabinas Basin play composition Slide 109 Chemical composition of field gases at the Sabinas Basin Slide 110 Buena Suerte well log at the Sabinas Basin: Induction registry Slide 111 Buena Suerte well secondary porosity analysis Slide 112 Buena Suerte well secondary porosity analysis: M & N Values 11

33 Slide 113 Buena Suerte well hydrocarbon analysis Slide 114 Section 4. Burgos Basin Slide 115 Main towns in northern Tamaulipas Slide 116 Regions & hydrologic basins in northern Tamaulipas Slide 117 Water bodies in northern Tamaulipas Slide 118 Water bodies in northern Tamaulipas: Hydrography Slide 119 Lower Río Bravo aquifer 2801, Tamaulipas Slide 120 Lower Río Bravo aquifer 2801, Tamaulipas: Hydrologic units Slide 121 Lower Río Bravo aquifer 2801, Tamaulipas: Hydrologic units map Slide 122 Water bodies in central Tamaulipas: Hydrography & geomorphology Slide 123 Physiography in northern Tamaulipas Slide 124 Physiography & climate at the Lower Río Bravo aquifer Slide 125 Physiography & climate at the Méndez San Fernando aquifer

34 Slide 126 Location of the Méndez San Fernando aquifer Slide 127 Geology in northern Tamaulipas Slide 128 Geology of the Lower Río Bravo Basin: map Slide 129 Geology of the Lower Río Bravo Basin Stratigraphy: Upper Cretaceous: Méndez Fm. Paleocene: Velasco & Midway Fm Slide 130 Geology of the Lower Río Bravo Basin Stratigraphy: Eocene: Wilcox, Carrizo, Mount Selman, Cook Mountain Fm. Slide 131 Geology of the Lower Río Bravo Basin Stratigraphy: Oligocene, Miocene, Pliocene, Pleistocene & Holocene Slide 132 Geology of the Burgos Basin: map Slide 133 Geology of the Burgos Basin. Slide 134 Geology of the Burgos Basin. Stratigraphy: Tamaulipas, San Felipe Fm Slide 135 Stratigraphic sequence from the Tertiary, Burgos Province Slide 136 Geology of the Burgos Basin. Méndez, Midway, Wilcox, Carrizo, Cook Mountain & Yegua Fm Slide 137 The Frío Marine Fm geologic structure 13

35 Slide 138 Geology of the Burgos Basin: Vicksburg & Frío Fm, Conglomerate Norma, Catahoula, Oakville, Lagarto, Goliad, Beaumont and Lizzie Fm Slide 139 Geologic column of Tamaulipas Slide 140 Geology of the Burgos Basin Slide 141 Well logs at the Burgos Basin, Tamaulipas Slide 142 Well locations at the Burgos Basin Slide 143 Permeability analysis of the Burgos Topo 1 well Slide 144 Porosity analysis of the Burgos Topo 1 well Slide 145 Porosity analysis of the Burgos Topo 1 well (log) Slide 146 Cuervito field of the Burgos Basin Slide 147 Cuervito field of the Burgos Basin: Geology Slide 148 Cuervito field of the Burgos Basin: Characteristics Slide 149 Slide Cuervito field of the Burgos Basin: Well logs 14

36 Slide 150 Slide Cuervito field of the Burgos Basin: Well logs Cue 1024 & Cue 1031 Slide 151 Well types according to their production potential at the Cuervito field Slide 152 Well logs at the Cuervito field Slide 153 Well production curves at the Cuervito field Slide 154 Secondary recovery at Arcabuz Culebra at the Burgos Basin Slide 155 Technical characteristics in the gas fields of the Burgos Basin Slide 156 Secondary recovery at the Burgos Basin Slide 157 Arcabuz well at the Burgos Basin Slide 158 Arcabuz well stress profile Slide 159 Arcabuz well re-fracturing design Slide 160 Geologic structural interpretation at the Arcabuz Culebra area Slide 161 Stratigraphic units and climate codes 15