Diadema II

completed

Compañías Asociadas Petroleras S.A. (Capsa or the Company) is a small Argentine oil producer which operates seven fields in Comodoro Rivadavia in the province of Chubut in southern Argentina including: Diadema, Sindicato, KM20, Solano, Mina Reserva, Mina Gemelos and Caleta Cordova (the latter is indirectly owned). Capsa proposes to further develop these fields in order to maintain or slightly increase its current production of about 11,500 barrels per day (“bbl/d”) over the next ten years. To date, reservoir development has mostly relied on waterflood, a secondary recovery technique utilizing water-injection. IFC has been requested to extend a revolving credit facility (the “Facility”) of up to $70 million ($50 million for its own account) to Capsa to help finance the company’s capital expenditures, working capital requirements and other corporate activities. The company’s 5-year $110 million capital expenditure plan entails: - the implementation of waterflood projects throughout its fields; - the drilling of producer and injector wells; - the maintenance and repair of primary and secondary wells; and the construction of associated water treatment facilities.