A subsidiary of Chevron Corporation signed an agreement with affiliates of the Argentine oil company YPF S.A. that furthers the development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province.

The agreement calls for initial outlays of approximately $1.24 billion to enable the first phase of development in the Loma La Lata Norte and Loma Campaña areas. The initial program will include the drilling of 100 wells in a 5,000-acre tract, part of a 96,000-acre concession.

"This strategic investment will allow Chevron to take part in the Vaca Muerta, one of the most exciting shale oil and gas plays in the world today," said George Kirkland, vice chairman of Chevron Corporation. "It provides Chevron with a new opportunity to profitably grow production beyond our 2017 production target of 3.3 million barrels per day."

"Chevron has a long history in Argentina, and this project demonstrates our commitment to the country, its economic development and its goal of achieving energy self-sufficiency," said Ali Moshiri, president, Chevron Africa-Latin America Exploration and Production.

The Loma La Lata field is currently producing more than 10,000 barrels of oil-equivalent per day.

Chevron Argentina currently produces an average of 21,000 barrels of crude oil and 4 million cubic feet of natural gas in the Neuquén Basin, where it holds operated interests ranging from 18.8 to 100 percent.

About Chevron
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif.