Pan American Energy LLC - Argentine Branch

completed

_x000C_Pan American Energy LLC (PAE or the company) is engaged mainly in the exploration, development and production of oil and gas. The company holds interests in thirteen oil and gas production blocks in Argentina and ten active oil and gas production and development blocks in Bolivia, through its indirect Bolivian subsidiary Empresa Petrolera Chaco S.A. (Chaco). In addition, PAE holds interests in 15 exploration blocks, eight in Argentina and seven in Bolivia. PAE was the second largest oil and gas producer in Argentina during 2004, accounting for approximately 15% of the country’s total oil production and approximately 12% of its total gas production. The company’s blocks in Argentina are located in the four major hydrocarbon basins - Golfo San Jorge, Austral, Neuquen and Northwest. The most significant blocks in terms of average net daily production, as of 2004, were Cerro Dragon in the Golfo San Jorge Basin, Cuenca Austral in the Austral Basin, and Acambuco in the Northwest Basin. IFC has been requested to provide financing of up to $250 million for Pan American Energy LLC, Argentine Branch (the “Branch”), PAE’s Argentine branch, to help finance its 2005 capital expenditure program for the continued development and production of three key blocks – Cerro Dragon, Piedra Clavada and Koluel Kaike, all located in the Golfo San Jorge Basin. The Project contemplates: - drilling for oil and gas, optimization of water-flooding projects and installation of facilities in the Cerro Dragon field; and - drilling and water flooding projects in the Koluel Kaike and Piedra Clavada blocks.