Pan American Energy LLC, Argentine Branch ("PAE") inform to the market

        
     Pan American Energy LLC, Argentine Branch ("PAE") inform to the market 
    On November 13, 2008, Pan American Energy LLC, Argentine Branch ("PAE") entered into a Letter of Intent with the
Argentine Government to study the construction of a new refinery in Argentina. The letter of intent was signed during a
ceremony chaired by Argentine President Cristina Fernandez de Kirchner.
    The ceremony was also attended by Governors of oil producing Provinces, union leaders, representatives of different
energy groups that work in Argentina. During the meeting, the company reported that it has already completed the first
phase of a Pre-Feasibility Study to analyze the construction and operation of a new refinery in Argentina, an initiative
called  Refinería del Sur Project   . 
    The  Refinería del Sur   Project aims at building a refining complex with a capacity to process 100,000 barrels of
oil per day. Its construction would demand an investment of around US$ 2,500 million. 
    Based on the preliminary studies, PAE commits to move towards the second phase of the  Refinería del Sur   Project,
in which the company shall intensify the planning tasks, market research, technology assessment, conceptual design,
development and analysis of economic aspects, financing alternatives and environmental impact studies of the project.
These tasks shall be entirely financed by PAE , at its own expense or jointly with other investors interested in joining
the project.
    The final report will be presented by PAE to the Ministry of Federal Planning by March 31, 2009.