On January 26th, 2015, The National Hydrocarbons Commission ("CNH") published in the Federal Official Gazette, the general administrative provisions in terms of authorizations for the identification and surface exploration of hydrocarbons (the "Provisions").

The Provisions establish the requirements and procedures to grant and terminate authorizations for activities of identification and surface exploration of hydrocarbons to be given by the CNH. Identification and surface exploration activities are defined by the Hydrocarbons Law and the Provisions as all assessment studies based solely on activities carried out on the surface of land or sea to evaluate the possible existence of hydrocarbons in certain area. These studies include works for the acquisition, processing, reprocessing or interpretation of information.

The Provisions are applicable for private and state productive companies wishing to carry out identification and surface exploration of hydrocarbons activities in Mexico. Interested parties may apply for as many authorizations as projects in which they wish to participate.

The Provisions establish:

               I.        The requirements and procedure to form a register, to allow CNH to ascertain that interested parties have technical, operative, financial and organizational capabilities to carry out identification and surface exploration of hydrocarbons activities;

              II.        The criteria to grant or terminate the authorizations for identification and surface exploration of hydrocarbons; and,

             III.        The terms, conditions, notices and term todeliver information to follow up the authorizations granted.

Also, in accordance with Hydrocarbons Law, the Provisions establish that assignees and/or contractors do not require authorization to carry out identification and surface exploration of hydrocarbons activities over the assigned and contractual areas they hold. However, they shall file notice to the CNH of the commencement of such activities, whether they carry out such activities themselves or through a third party hired for such purpose.