exv10w14



 





Exhibit 10.14




DLS Argentina Limited

SUCURSAL ARGENTINA




City of Buenos Aires, April 1, 2005




Messrs.

Pan American Energy LLC Sucursal Argentina (Argentine Branch)

Av. Leandro N. Alem 1180

(1001) Buenos Aires

By hand




Re: Strategic Agreement for the rendering of Drilling, Completion and Workover Services of
oil and gas wells. Amendment # 1.



Dear Sirs,




We hereby submit to your consideration our sole amendment proposal (the “Amendment”) to the
Strategic Agreement for the rendering of Drilling, Completion and Workover Services of wells
located in the area of the Gulf of San Jorge, Provinces of Chubut and Santa Cruz, and other related
services transcribed in our note dated July 1, 2003, the text of which is transcribed herein below.



All capitalized terms used in this Amendment that have not been expressly defined shall have the
meaning assigned to them by the Strategic Agreement.



WHEREAS, taking into account the changes in prices and costs verified in the local market, it is
the PARTIES intention to adjust the tariffs and work modalities set forth by the Strategic
Agreement;



THEREFORE the PARTIES agree to execute this Amendment under the following terms:



1. PARTIES



DLS Argentina Limited – Sucursal Argentina, with legal domicile at Sarmiento 663, City of Buenos
Aires, hereinafter referred to as “DLS” and PAN AMERICAN ENERGY LLC – Sucursal Argentina, with
legal domicile at Av. Leandro N. Alem 1180 of the City of Buenos Aires, hereinafter referred to as
“PAE”, (both parties jointly referred to as the “PARTIES” and individually as “PARTY”).



2. PURPOSE



The purpose of this Amendment is to adjust the tariffs that DLS shall be entitled to charge for the
SERVICES, as established in Appendix I to the present offer. Such new prices and conditions shall
apply to the SERVICES rendered as from January 1, 2005.



In addition, and taking into account that the cost variations begun during the second semester of
2004, PAE acknowledges that DLS is entitled to an amount of US$570,000.00 (five hundred and seventy
thousand US Dollars) plus the corresponding VAT, covering all sums due, which DLS declares
sufficient so as to cover any eventual additional cost incurred up to January 1, 2005. DLS shall
invoice this amount and PAE shall pay it within 30 (thirty) days following reception of the
invoice.



3. RENDERING OF THE SERVICES



The Services that constitute the subject matter of this Agreement shall be rendered exclusively to
the extent to which they are required by PAE and in the amount determined by the latter, in
accordance with the guidelines set forth by the Strategic Agreement.



4. RATIFICATION



 









 





All terms and conditions not expressly amended by the present Amendment shall continue to be
governed by the Strategic Agreement, whose terms and conditions are deemed to be reproduced herein
and ratified to all effects.



The present offer shall be considered accepted by you when Pan American Energy LLC (Sucursal
Argentina) pays the Invoice 0001-00001445 that DLS Limited Argentina (Sucursal Argentina) shall
present on April 18, 2005, for the amount established in the second paragraph of Clause 2 of the
present Amendment.



For the purposes of this Amendment the payment date shall be considered as the “Effective Date” of
the Amendment.



Sincerely,




/s/ Martín Zöldi




Martín Zöldi

Vice President




 









 





Appendix I





	1.	 	Drilling Service






The certification modality and applicable rates defined by Section 3.1.1 of the “APPENDIX I –
PRICES” of the Strategic Agreement shall be modified as follows:




	 	a.	 	The Standard Hourly Rate “K” shall have following new value:
	 
	 	 	 	K = 934.75 UM(30%USD)/hour
	 
	 	b.	 	In case that during a well completion more than 32.4 hours are employed in well
logging operations, in addition to the global amount “LS” payable per completed well, an
extra amount shall be payable, which shall be determined as follows:
	 
	 	 	 	H1 x SHR x H2 x OHR
	 
	 	 	 	Where:
	 
	 	 	 	H1 = hours of logging exceeding the first 32.4 and up to a maximum of 48 hours in whole
	 
	 	 	 	H2 = hours of logging exceeding the first 48 hours
	 
	 	 	 	SHR = as defined by Section 3.1.4 of the “APPENDIX I – PRICES” of the Strategic Agreement
	 
	 	 	 	OHR = as defined by Section 3.1.2 of the “APPENDIX I – PRICES” of the Strategic Agreement






	2.	 	Completion and Workover Services
	 
	 	 	The applicable rates defined by Sections 3.2.1, 3.2.2 and 3.2.3 of the “APPENDIX I – PRICES” of
the Strategic Agreement shall have following new values:
	 
	 	 	OHR = Operation Hourly Rate = 288.55 UM(19%USD)/hour
	 
	 	 	SHR = Stand By Hourly Rate = 261.16 UM(19%USD)/hour
	 
	 	 	CFHR = Climate Factor Hourly Rate = 186.84 UM(19%USD)/hour
	 
	 	 	DTA(=ƒ) = DTA between wells located on a same flange = 4,862.00 UM(19%USD)/day + [Distance in
excess of 20 Km.] x 84.00 MU(19%USD)/Km.
	 
	 	 	DTA(1ƒ) = DTA between wells located on different flanges = 11,142.62 UM(19%USD)
	 
	3.	 	Pulling Service
	 
	 	 	The certification modality and applicable rates defined by Sections 3.3.1, 3.3.2 and 3.3.3 of
the “APPENDIX I – PRICES” of the Strategic Agreement shall be modified as follows:
	 
	 	 	Light Pulling
	 
	 	 	OHR = Operation Hourly Rate = 232.96 UM(16%USD)/hour
	 
	 	 	SHR = Stand By Hourly Rate = 209.66 UM(16%USD)/hour
	 
	 	 	CFHR = Climate Factor Hourly Rate = 116.48 UM(16%USD)/hour
	 
	 	 	DTA = 931.84 UM(16%USD) + [Distance in excess of 20 Km.] x 15.53 MU(16%USD)/Km.




 









 






	 	 	Heavy Pulling
	 
	 	 	OHR = Operation Hourly Rate = 263.24 MU(16%USD)/hour
	 
	 	 	SHR = Stand By Hourly Rate = 236.92 MU(16%USD)/hour
	 
	 	 	CFHR = Climate Factor Hourly Rate = 131.62 MU(16%USD)/hour
	 
	 	 	DTA = 1,316.22 UM(16%USD) + [Distance in excess of 20 Km.] x 17.54 MU(16%USD)/Km.