PAE G San Jorge

completed

Pan American Energy (“PAE” or the “Company”) is engaged mainly in exploration, development and production of oil and gas. PAE is the second largest oil and gas producer in Argentina and has blocks located in the four major hydrocarbon basins – Golfo San Jorge, Austral, Neuquina and Northwest. The most significant block in terms of both reserves and production is the Cerro Dragon block in the Golfo San Jorge basin, located in the south of Argentina. IFC has been requested by PAE to mobilize a corporate loan facility of up to $250 million, including up to $50 million for its own account. The loan proceeds will partially fund the Company’s 2009 capital expenditures for further development of PAE’s most prolific oil assets, Cerro Dragon, Piedra Clavada and Koluel Kaike in the Golfo San Jorge Basin (GSJ) (the Project). The Project will include activities covering drilling and facility expansions and improvements and part of the 2009 investment program will go towards increasing gas production. By the end of 2009, the planned activities are expected to increase oil and gas production.