Diadema III

completed

Compañías Asociadas Petroleras S.A. (“CAPSA” or the “Company”) is a small Argentine oil producer which operates 7 fields in the Diadema and KM20 fields (“Fields”) in the Comodoro Rivadavia region of Chubut province in southern Argentina. CAPSA which currently produces 1,660 m3/day (eq. to 10,500 bbl/day) has demonstrated expertise in the development of mature oil fields through the reliance on secondary recovery water flood techniques. As part of its strategy to sustain the production of its mature fields, CAPSA will be undertaking flood efficiency techniques through polymer injection and the drilling of infill wells, and the drilling of advanced wells. The Company had already initiated in 2007 a pilot program for polymer injection which proved successful and intends now to go full scale. To move forward with this initiative, CAPSA has requested a loan to IFC which will also serve to refinance CAPSA’s current debt.