LINDERO ATRAVESADO

Pan American Energy LLC., Argentina Branch (PAE) has engaged Tristone Capital (Tristone) to seek proposals for the divestiture of its entire ownership in the Lindero Atravesado Block (Lindero), Neuquén Basin, Argentina. PAE holds a 62,5% operated interest in the Block.

The block is adjacent to Loma de la Lata, the largest gas field in Argentina. It is located approximately 40 km. NW of the city of Neuquen and has been on stream since 1974, with an accumulated production of 1300 Bcfe (233.730 MBOE).

Lindero is a unique opportunity to participate in a world class asset in the Neuquina basin.

The area is comprised of two separate fields, Lindero Atravesado Oriental in the eastern portion of the block and Lindero Atravesado Occidental in the western portion.

Highlights

• Opportunity to acquire a material, long life gas-weighted production asset located in the prolific Neuquén Basin
• Net 2P reserves of 93.9 Bcfe plus unrisked resources of 43.2 Bcfe and noncertified Upside potential of 84 Bcfe (December 31, 2007)
• Average PAE net daily 2007 production was 25.8 MMcfe/d (22.6 MMcf/d of gas, 553 bbl/d of oil and NGL's)
• 2008E PAE net Operating Cashflow of US$16.6MM
• 2 fields developed by 126 wells, 7 batteries and 2 treatment facilities
• Contract life through October 2016, with the possibility of a 10 year extension
• Substantial upside including a portfolio of exploration and development opportunities with improved gas price environment following recent government resolutions
• Full 2-D and 3-D seismic coverage

Transaction Process

• Confidential Memorandum available upon request (requires executed CA)
• Data room opens early May 2008 in Buenos Aires, Argentina
• Offers due July 21, 2008