On March 23, 2012 YPF signed with ANCAP a contract for onshore oil prospection. The contract operates over an area of around 10,000 km2 covering Artigas, Salto, Tacuarembo and Rivera provinces. YPF adds activities to what Schuepbach Energy and ANCAP are planning for the named North Basin of Uruguayan territory.
YPF will assume all the risks and costs generated by the operations during the phase of prospection.
During the time of the contract YPF will have the right of exclusivity for prospection activities in the area. The contract has an initial period of one year for the fulfillment of the Minimum Prospection Program that could be extended by one more year.
Under this contract YPF acquires the right of priority to request one or more exploration and exploitation contract inside the area assigned for prospection activities.
The Minimum Prospection Program covers, inter alia: geochemical research, petrographic and petrophysical research; reprocessing of 500 km of 2D seismic lines; reinterpretation of electric profiles; and geochemical prospection.