Astra C.A.P.S.A. (a company controlled by Repsol), in a joint operation with Yacimientos Petrol�feros Fiscales (YPF) has exercised the right of preferential purchase to acquire the full holding which Mexpetrol S.A. de C.V. has in Mexpetrol Argentina S.A. This holding amounts to 67%.

Mexpetrol Argentina has a joint contract with YPF to operate the Port�n Buta Ranquil oil field in which it also holds a 50% stake. Current output amounts to 24,500 barrels of oil per day. Proven reserves, as stated by Mexpetrol Argentina at 31 December 1996, amount to 41.4 million barrels of oil and 138,000 million square feet of gas.

Once the transaction is completed, Astra would control 66.5% of Mexpetrol Argentina S.A.�s capital and take over the operation of the oil field. The remaining 33.5% of the company�s capital would remain with YPF. YPF also controls 50% of the oil field.

This acquisition would increase Astra�s oil production and proven oil reserves by 11%.

Currently, the parties concerned are negotiating the sales contracts and the final purchase price. The negotiating period will last for 30 days. The total size of the transaction is estimated at US$200 million of which US$100 million would correspond to Astra.

Repsol�s activities in Argentina have increased gradually, since they began with the YPF privatization processes in 1990, and have currently reached a considerable size. In the first round, and in a 50% partnership with Astra, Repsol obtained four exploration blocks in the South of the Gulf of San Jorge basin. In 1991, it raised its 25% stake in the Vizcacheras field to 45%. Gas Natural SDG, in which Repsol holds an interest, has been distributing gas in the northern area of Buenos Aires since 1992. Through the acquisition of its stake in Astra last June, Repsol has strengthened and increased its presence in Argentina, where it is involved in exploration, refining and distribution of oil and gas products, and electricity generation and distribution. In fact, Astra is a growing and expanding company