The license agreement for the extraction of hydrocarbons stipulates that the contractor will provide and be responsible for all technical and financial resources required for the execution of the operations and will have the right of ownership over the hydrocarbons extracted in the contractual area. The Contractor will pay a royalty, based on audited Hydrocarbons.

The State is a partner of the contractor. The contributions for the State are:
1. The contractual fee for the exploration phase
2. Consideration based on gross income before deducting costs
3. Adjustment mechanism based on production volume and prices

There are two possible extensions in the contract term subject to the area being in regular commercial production, the first extension of 10 years and a second extension for an additional period of 5 years.

Prospective Resources: The volume of hydrocarbons estimated at a certain date, of accumulations that are not yet discovered but have been inferred and are estimated to be potentially recoverable, through the application of future development projects.

Definitions:
- Reserves: they are defined as those quantities of hydrocarbons that are expected to be commercially
recovered from known deposits at a given date.
- 1P Reserves: Proved Reserves. With a probability of at least 90 percent that the volume to be recovered is
equal to or greater than the calculated one.
- 2P Reserves: Proved Reserves plus Probable Reserves. With a probability of at least 50 percent that the
volume to be recovered is equal to or greater than the 2P estimate.
- 3P Reserves: Proved Reserves plus Probable Reserves plus Possible Reserves. With a probability of at least 10
percent that the volume to be recovered is equal to or greater than the estimate of 3P.
- Prospective Resources: those amounts of oil that are estimated, on a given date, to be potentially
recoverable from undiscovered deposits.