PIONEER OVERVIEW• General• 1.8 million net acres• Average daily production ~ 25,000 BOEPD• 120 MMBOE net proved reserves

• Neuquen Basin• Pioneer-operated• 426 active wells• 4 gas plants• Several hundred development locations• Continue to expand field limits• Low cost operator at $2.80/BOE

• Austral Basin• BP-operated• 178 active wells• 3 gas plants• One block Pioneer operated• Significant exploration potential

• San Jorge Basin• One block Pioneer operated

PIONEER PROPERTIES

Reversion EL SAUCE

FORTIN DE PIEDRA

EL SANTIAGUEÑO JAGÜEL DE

LINDERO ATRAVESADO

RINCONADA

LOMA LA LATA

CN-X

BAJADA DEL PALO

AGUA SALADAGUADALOSA

BAJO DEL PICHE

LOS BASTOS

LA CALERA

EL PORVENIRSENILLOSA ESTE

EL SAUCE

NEUQUEN

AGUADA PICHANA

MANGRULLO

TOUQUET

CENTENARIO

AL SUR DE LA DORSAL

AGUA DEL CAJON

PUESTO

LOMA NEGRA

LOS MACHOS

Pto. MORALES

DOS HERMANAS

BANDURRIA

BLANCO DE LOSMANGRULLO

LOMA

PIEDRA CHENQUE

la ARENA

RINCON DEL

Pto. GALDAME

LA YESERA

CERRO BANDERA

CNQ-16/A

ANTICLINAL CAMPAMENTO

ZAPALACNQ-14

ASD

TOTORAL

PASO AGUERRE

BAJO BAGUALES

ASD

AGUADA BAGUALESAL NORTE DE LA DORSAL

MESETA BUENA ESPERANZA

AGUADA VILLANUEVA

PASO

ASD

OCTOGONO

ASD DOS HERMANAS

AGUERRE

DADIN

ASD

SIERRAS BLANCAS

LOS CALDENES

ESTACION CERVANTES

LOMA CAMPANA

del MEDIO

AGUADA de

SUR

DE MINASPORTEZUELO Est.FERNANDEZ ORO

PUESTO GONZALEZ

CNQ-27 RNN

CERRO MANRIQUE

VILLA REGINA

LAGUNA EL LORO

BAJO

L.del MOJON

LAS TACANAS

EL CORTE

CN-XI

GENERAL ROCA

GENERAL ROCAREVERSION

LA PENDIENTE

CERRO VAGON

ASD

CUTRAL CO

COIRON AMARGO

PUESTO SILVA OESTE

LOMA JARILLOSA ESTE

LOMA DEL MOJON

MATA MORA

SIERRAS BLANCAS

Pto. ZUÑIGA

Pto. ZUÑIGA

Pto. ZUÑIGA

SENILLOSAOESTE

SIERRAS BLANCAS

OJO DE AGUA

COLLON CURA

CHASQUIVIL

CHASQUIVIL

COLLON CURA

LOMA NEGRA - N I

CNQ-38a

Pto. ZUÑIGA

HUACALERA

OLIVOS ORIENTAL

CNQ-27 RNN

BLOQUE I

BLOQUE II

CNQ-31 PUESTO GALDAMEREVERSION

CNQ-16/AReversion

Pto. PRADO

Pto.PRADO

PUESTO FLORES

ESTANCIA VIEJA

Ea. VIEJA

LAGO PELLEGRINI ESTE

LAS BASES

Pto. SURVELIN

LOS OLIVOSBLANCO DE

CNQ-Reve

CNQ-16/AReversion

COVUNCO NORTE - SURRIO NEUQUEN

1993 1994 1998 1999 2001 2003

Inlet Comp.Gas from

Wells.

LOMA NEGRA PROCESS BLOCK DIAGRAM

Residue Gas

Compressors.

Inlet Comp.Dew Point Plant

Fractionation Plant.

CryogenicPlant

Gasoline40 m3/d

Gas toSales

Ethane – 100 Tn/d

Propane – 70 Tn/d

Butane – 50 Tn/d

Gasoline – 70 m3/d

Existing

New

2,1 MM m3/d

2,0 MM m3/d 1,98 MM m3/d

1,93 MM m3/d

3,9 MM m3/d10000 HP

6000 HP

Prep. by Eduardo Bosio

TYPICAL GAS COMPOSITIONS

0.886 mmcmd0.956 mmcmd1.08 mmcmdVolume @ 9300 Kcal/m30.919 mmcmd0.960 mmcmd1.00 mmcmdActual Volume

8972 Kcal/m39263 Kcal/m310031 Kcal/m3Heat Content

100.00%100.00%100.00%

0.00%0.00%0.06%Octane & Sup C8+

0.00%0.00%0.11%Heptane C7

0.00%0.00%0.32%Hexane C6

0.00%0.00%0.27%Normal-Pentane nC5

0.00%0.00%0.20%Iso-Pentane iC5

0.02%0.02%0.78%Normal-Butane nC4

0.01%0.01%0.29%Iso-Butane iC4

0.09%0.09%2.05%Propane C3

0.24%4.53%4.35%Ethane C2

98.47%94.23%90.49%Methane C1

0.83%0.79%0.76%Nitrogen N2

0.35%0.33%0.32%Carbon Dioxide CO2

Ethane Recovery ModePropane Recovery ModeComposition

Outlet Gas CompositionAverage Inlet GasComponent

Prep. by Eduardo Bosio

70 bar

LPG PROCESS FLOW DIAGRAM

Inlet

Comp

InletSeparator

Water / Oilto SlopTank

Dehydrator

Hot Oil Heater

Cold Separator

Turbo-Expander

Reboiler

C3+ Mix toFractionation Train

Plate Fin Heat Exchangers

Turbo-ExpanderTurbo-Expander

32000 rpm

J-T Valve

BoosterCompressor

Residue GasCompressor

Gas AirCooler

Residue Gasto Sales

Gas AirCooler

-75 °C

-100 °C

50 °C

69 bar

20 bar27 bar

70 bar

Surge Tank

Pipeline Pump

21 bar

95 °C

Dem

ethanizer Tower

-95°C

1400 HP

2 mmcmd8 bar

C2+ Mix to LiquidPipeline (Future)

Transfer Pump

50 °C

-25 °C

GasfromWells

Prep. by Eduardo Bosio

FRACTIONATION TRAIN

Depropanizer

Debutanizer

C3+ fromDemethanizer

Propane

Butane

GasolineReboiler Reboiler

Hot Oil Heater

Accumulator

Air Cooler

C4 Reflux Pump

Accumulator

C3 Reflux Pump

20 bar

50 °C

145 °C

50 °C

100°C

7 bar

125°C

Air Cooler

Air Cooler

Air CoolerHot Oil Pump

Prep. by Eduardo Bosio

LOMA NEGRA: LPG & FRACTIONATION PLANTS

Capacity: 2.1 MMcmd (75 MMscfd)

Prep. by Eduardo Bosio

DEW POINT PLANT

Capacity: 2 MMcmd of gas / 40 cmd of Gasoline

Prep. by Eduardo Bosio

INLET COMPRESSORS 2.0 MMCMD – 10000 HP

Prep. by Eduardo Bosio

PLANT INLET SEPARATOR

Prep. by Eduardo Bosio

FILTERS & DEHYDRATORS

Prep. by Eduardo Bosio

HEAT EXCHANGERS (HTX)

Prep. by Eduardo Bosio

BOOSTER COMPRESSOR & EXPANDER

Prep. by Eduardo Bosio

DEMETHANIZER TOWER•Height: 44,5 m

•Db: 1,4 m / 1,1 m / 1,8 m

•Material: CS / SS

•Wall Thickness: 2 in / 1,5 in

•Weight (empty): 73 Tn

•Wind Speed Design: 160 Km/h

•Free Standing Design

Prep. by Eduardo Bosio

AIR COOLERS

Prep. by Eduardo Bosio

J-T VALVE

Prep. by Eduardo Bosio

150 m3 SURGE TANK – Liquids fromDemethanizer

Prep. by Eduardo Bosio

Pipeline & Transfer Pumps

Prep. by Eduardo Bosio

Residue Gas Compressors – 2.0 MMcmd – 6000 HP

Prep. by Eduardo Bosio

STORAGE TANKS – 1200 m3

BUTANEBULLETS

450 m3PROPANEBULLETS

750 m3

Prep. by Eduardo Bosio

Gasoline Tank, Transfer Pump & Mass Meter

Prep. by Eduardo Bosio

Demethanizer & Fractionation Towers

Prep. by Eduardo Bosio

De-Propanizer & De-Butanizer Towers

Depropanizer

•Height: 26 m

•Diameter: 0,85 m

•Material: CS

•Wall Thick.: 16 mm

•Weight: 25 Tn

Debutanizer

•Height: 18 m

•Diameter: 1,35 m

•Material: CS

•Wall Thick.: 9,5 mm

•Weight: 10 Tn

Prep. by Eduardo Bosio

HOT OIL PUMPS & SURGE TANK

Prep. by Eduardo Bosio

REFLUX PUMPS

Prep. by Eduardo Bosio

REBOILERS & ACCUMULATORS

Prep. by Eduardo Bosio

AIR COOLERS & HOT OIL HEATER

Prep. by Eduardo BosioPrep. by Eduardo Bosio

Auxiliary Equipment• Control Room & Plant Office• Delta V Control System Operators• Fuel Gas System• Fire Fighting Facilities• Truck Scale• Flaring System• Truck Loading Rack• Odorization Control Panel• Gas & Liquid Chromatograph

Prep. by Eduardo Bosio

CONTROL ROOM & PLANT OFFICE

Prep. by Eduardo Bosio

DELTA V – OPERATOR WORKSTATIONS

Prep. by Eduardo Bosio

REGENERATION GAS HEATER & HOT OIL HEATERS

Prep. by Eduardo Bosio

FUEL GAS SYSTEM & OFF SKID PIPING

Prep. by Eduardo Bosio

FIRE WATER TANK & PUMPS – TRUCK SCALE

Prep. by Eduardo Bosio

TRUCK LOADING RACKS

Prep. by Eduardo Bosio

Gas Meter Runs & Shut Down Valves

Prep. by Eduardo Bosio

LPG TRUCK on TRUCK SCALE

Prep. by Eduardo Bosio

FLARING SYSTEM

Prep. by Eduardo Bosio

ODORIZATION PANEL

Prep. by Eduardo Bosio

GAS & LIQUID CHROMATOGRAPH

Prep. by Eduardo Bosio

Construction Facts

• People: 200• Man-hours: 180.000• # of Accidents / Incidents ZERO• Contractors & Subs. 30• Investment US$ 14.000.000• Soil Movement: 104.000 m3• Concrete: 600 m3• Equipment & Piping: 4000 Tn• Insulation: 2200 m2• Paint: 1200 lt

Prep. by Eduardo Bosio

MAIN CONTRACTORS

• CRYOGENIC PLANT– Minor Equipment & Management: CBI (Arg)– Know How & Main Equipment: Howe Baker

Engineers (USA)– Construction: SIMA S.A. (Arg)

• FRACTIONATION PLANT– Management: Pioneer (Arg)– Know How: Hytech S.A. (Arg)– All Equipment: Argentine Suppliers– Construction: SIMA S.A. (Arg)

Prep. by Eduardo Bosio

PIONEER OVERVIEWPIONEER PROPERTIESAuxiliary EquipmentConstruction FactsMAIN CONTRACTORS