Pan American Energy LLC - Argentine Branch (II)

completed

_x000C_Pan American Energy LLC (PAE or the company) is engaged mainly in the 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. The company holds interests in 10 oil and gas production blocks in Argentina and 13 oil and gas production and development blocks in Bolivia, twelve of which are held through its indirect Bolivian subsidiary, Empresa Petrolera Chaco S.A. (Chaco), and its direct Bolivian subsidiary, PAE E&P Bolivia Ltd. In addition, PAE holds interests in ten exploration blocks, five in Argentina and five in Bolivia. IFC has been requested to provide financing of up to $550 million to Pan American Energy LLC, Argentine Branch, to help finance its full year 2007 and first half of 2008 capital expenditure program (Capex Program) for the continued development and production of the Cerro Dragon block in the Golfo San Jorge basin, which represents approximately half of the company’s total production. The project comprises an oil and gas drilling program, completion of water-flooding projects, and the construction of necessary facilities to support the increase in production.