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Pan Ameri Energy LLC (57UC)

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Monday 24 September, 2007

Pan Ameri Energy LLC

1st Quarter Results

Pan American Energy LLC, Argentine Branch
                  Translation from the original prepared in Spanish for publication in Argentina

PAN AMERICAN ENERGY LLC

(ARGENTINE BRANCH)

FINANCIAL STATEMENTS AS OF MARCH 31, 2007

AND COMPARATIVE INFORMATION


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           CONTENTS                                                                                        Page


           Review report on interim financial statements                                                      2
           Corporate information                                                                              4
           Balance sheet                                                                                      5
           Statement of income                                                                                6
           Statement of cash flows                                                                            7
           Notes to the financial statements                                                                  8
           Exhibits A, B, C, D, E, F, G, H and I                                                             24
           Reporting summary                                                                                 37
           Supplementary information required by the Buenos Aires Stock Exchange                             43
*T

REVIEW REPORT ON INTERIM FINANCIAL STATEMENTS

To the Legal Representative of

Pan American Energy LLC (Argentine Branch)

Av. Leandro N. Alem 1180 - 11th Floor

Buenos Aires

C.U.I.T.: 30-69554247-6

We reviewed the accompanying balance sheet of Pan American Energy LLC (Argentine
Branch) as of March 31, 2007, and the related statements of income and cash
flows, notes 1 to 14 and exhibits A, B, C, D, E, F, G, H and I for the
three-month period then ended, comparative with the same period of the prior
year, and in the case of the balance sheet and the related notes and exhibits,
with the financial statements as of December 31, 2006. The preparation of these
financial statements is the responsibility of the Legal Representative of the
Branch.

We conducted our review in accordance with auditing standards generally accepted
in the Republic of Argentina applicable to the limited scope review of interim
financial statements. A review of interim financial information consists
principally in applying analytical procedures to the accounting data and making
inquiries of the individuals responsible for its preparation. As a review is
substantially less in scope than an audit of annual financial statements, we do
not express an opinion on the financial position of the Branch as of March 31,
2007, nor on the results of its operations and the cash flows for the
three-month period then ended.

In relation to the financial statements as of December 31, 2006, presented for
comparative purposes, we issued an unqualified opinion on March 9, 2007. In
addition, on May 12, 2006, we issued an unmodified review report on the
financial statements as of March 31, 2006, also presented for comparative
purposes.

Based on our review, we report that the financial statements as of and for the
three months ended March 31, 2007 referred to in the first paragraph consider
all the significant facts and circumstances of which we became aware during our
review and in relation to them we have no observations.

In compliance with rules and regulations in force, we report that:

a) the financial statements comply with the provisions of the Corporations Law
and the regulations on accounting documentation of the National Securities
Commission, they are transcribed in the Inventory Book and they derive from the
accounting records of the Branch maintained in Argentina which, in their formal
aspects, are kept pursuant to legislation in force. The special report required
by section 287 of Resolution 7/2005 of the Inspection Board of Legal Entities
(IGJ) has not been filed yet. The information systems used to process the data
included in the financial statements are maintained under the security and
integrity conditions based on which they were authorized;

b) we read the reporting summary (sections 'Balance sheet items', 'Income
statement items', 'Statistical data' and 'Ratios') and the supplementary
information to the financial statements required by section 68 of the
regulations of the Buenos Aires Stock Exchange and, based on our review as far
as it relates to our area of responsibility, we have no observations, and

Translation from the original prepared in Spanish for publication in Argentina

c) as of March 31, 2007, the accrued liability for pension contributions arising
from the accounting records amounted to $ 4,999,672, no amounts being due as of
that date.

Buenos Aires, May 10, 2007

SIBILLE

Graciela C. Laso

Partner

Translation from the original prepared in Spanish for publication in Argentina

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

FINANCIAL STATEMENTS as of March 31, 2007 for the three-month period beginning
January 1, 2007 and ended March 31, 2007 and comparative information

Stated in pesos

Legal address of the Branch: Av. Leandro N. Alem 1180 - 11th floor - Buenos
Aires

Main activity of the Branch: Oil and gas exploration and production

Date of registration with the Public Registry of Commerce: October 17, 1997

Registration number with the Inspection Board of Legal Entities: 1868, Book 54,
Volume B of Foreign Companies

Capital registered with the Inspection Board of Legal Entities: $ 200,000,000
under number 1257, Book 57, Volume B of Foreign Companies, and $ 21,779,007
under number 2106, Book 58, Volume B of Foreign Companies (Note 8)

Date of registration of capital with the Inspection Board of Legal Entities:
$ 200,000,000 on July 11, 2003 and $ 21,779,007 on December 12, 2005

Subscribed capital (paid in full): $ 221,779,007

HEAD OFFICE

Name: Pan American Energy LLC

Legal address: The Corporation Trust Company, Trust Corporation Center, 1209
Orange Street, Wilmington, Delaware - 19801 - United States of America

Main activity: Oil and gas exploration and production

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

BALANCE SHEET as of March 31, 2007 and as of December 31, 2006 (in pesos)

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                                                                       03/31/2007         12/31/2006
                                                               ------------------ ------------------
ASSETS
CURRENT ASSETS
Cash on hand and in banks (Note 4 a)                                   13,748,558         34,350,572
Investments (Exhibit C)                                               653,802,811        215,056,665
Accounts receivable (Note 4 b)                                        674,787,293        737,519,309
Other receivables (Note 4 c)                                           90,943,969        117,891,798
Inventories (Note 4 d)                                                 59,379,939        130,809,611
                                                               ------------------ ------------------

Total current assets                                                1,492,662,570      1,235,627,955
                                                               ------------------ ------------------
NON CURRENT ASSETS
Other receivables (Note 4 e)                                           29,635,264         28,915,445
Investments (Exhibit C)                                                14,479,458          8,719,558
Property, plant and equipment (Exhibit A)                           6,124,133,272      5,870,488,156
Intangible assets (Exhibit B)                                           1,559,726          1,918,767
                                                               ------------------ ------------------

Total non current assets                                            6,169,807,720      5,910,041,926
                                                               ------------------ ------------------

Total assets                                                        7,662,470,290      7,145,669,881
                                                               ================== ==================
LIABILITIES
CURRENT LIABILITIES
Accounts payable (Note 4 f)                                           507,406,868        661,464,349
Loans (Note 4 g)                                                    1,615,117,580        877,022,350
Payroll and social security contributions                              22,439,143         32,833,398
Taxes payable (Note 4 h)                                              500,421,548        465,157,941
Provision for future compensation of personnel (Exhibit D)              2,018,028          1,968,408
                                                               ------------------ ------------------

Total current liabilities                                           2,647,403,167      2,038,446,446
                                                               ------------------ ------------------
NON CURRENT LIABILITIES
Accounts payable (Note 4 i)                                            52,263,995         32,579,735
Loans (Note 4 j)                                                    1,830,401,929      2,265,642,982
Other liabilities (Note 3.2.j)                                        101,442,251         97,036,602
Deferred tax (Note 3.2.h and 11)                                      423,732,423        441,951,134
Provision for future compensation of personnel (Exhibit D)              9,982,892          9,797,018
Provision for environmental remediation (Exhibit D)                   121,158,385        122,553,250
Accruals (Exhibit D)                                                   20,616,188         19,903,786
                                                               ------------------ ------------------

Total non current liabilities                                       2,559,598,063      2,989,464,507
                                                               ------------------ ------------------

Total liabilities                                                   5,207,001,230      5,027,910,953

Account with Head Office (Note 7)                                   1,994,230,053      1,656,519,921
Capital allocated to the Branch (Note 8)                              221,779,007        221,779,007
Capital adjustment                                                    239,460,000        239,460,000
                                                               ------------------ ------------------

Total                                                               7,662,470,290      7,145,669,881
                                                               ================== ==================
*T

The accompanying notes and exhibits are an integral part of these financial
statements.

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

STATEMENT OF INCOME for the period beginning January 1 and ended March 31, 2007
comparative with the same period of the prior year (in pesos)

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                                                     2007                           2006
                                                   (3 months)                     (3 months)
                                         ------------------------------ ------------------------------

Sales                                                    1,357,688,556                  1,414,584,471
Cost of sales (Exhibit E)                                ( 674,527,802)                 ( 573,384,381)
                                                       ----------------                ---------------

Gross profit                                               683,160,754                    841,200,090

Administrative expenses (Exhibit G)                       ( 55,433,643)                  ( 50,132,701)
                                                       ----------------                ---------------

Operating income                                           627,727,111                    791,067,389

Financial results
 Generated by assets
  Interest                                  9,020,029                      20,496,234
  Exchange gains/losses                    13,784,807                      14,155,351
    Other financial results                   911,972       23,716,808        895,246      35,546,831
                                         -------------                  --------------

 Generated by liabilities
  Interest                                (63,875,109)                    (35,577,862)
  Exchange gains/losses                   (32,079,825)                    (29,452,264)
    Other financial results               ( 2,942,515)    ( 98,897,449)   ( 3,021,102)   ( 68,051,228)
                                         -------------                  --------------

Other income and expenses - net                            ( 6,650,738)                  ( 60,087,391)
                                                       ----------------                ---------------

Income before income tax                                   545,895,732                    698,475,601

Income tax expense - current (Note 3.2 h
 and 11)                                                 ( 204,821,539)                 ( 258,498,724)

Income tax benefit - deferred (Note
 3.2.h and 11)                                              18,218,711                      9,903,722
                                                       ----------------                ---------------

Net income (Note 7)                                        359,292,904                    449,880,599
                                                       ================                ===============
*T

The accompanying notes and exhibits are an integral part of these financial
statements.

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

STATEMENT OF CASH FLOWS for the period beginning January 1 and ended March 31,
2007 comparative with the same period of the prior year (in pesos)

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                                                                         2007            2006
                                                                     -------------- ---------------
                                                                       (3 months)     (3 months)
Cash provided by operations:

  Net income                                                           359,292,904     449,880,599

  Adjustment to reconcile net income with the cash generated by
   operations

  Depreciation of property, plant and equipment                        200,991,260     152,776,659
  Amortization of intangible assets                                        405,814         624,291
  Income tax expense - current                                         204,821,539     258,498,724
  Net increase in allowance for bad debtors                                176,418       8,937,762
  Decrease in property, plant and equipment (net)                           31,644         992,888
  Net increase in accrual for lawsuits                                     712,402      27,542,671
        Increase in the provision for future compensation of
         personnel                                                         740,000               -
        Net (decrease) increase in provision for environmental
         remediation                                                   ( 1,394,865)      2,474,819
        Net increase in the allowance for obsolescence of materials              -         ( 3,877)
  Other non-cash items (1)                                              54,348,401      46,405,894

      Changes in assets, liabilities and account with Head Office:

        Decrease (increase) in accounts receivable                      62,555,598    (245,122,609)
  Decrease in inventories                                               71,429,672      49,306,687
        Decrease in other receivables                                   26,228,010      17,112,468
  Decrease in accounts payable, payroll and social security
   contributions,
taxes payable less provisions and other liabilities                   (152,156,727)   ( 25,589,874)
        Compensation paid to personnel due to defined benefit plans      ( 504,506)      ( 441,111)
  Payments related to lawsuits                                                   -        ( 84,970)
        Income tax paid                                               (157,763,032)   (111,112,006)
                                                                     -------------- ---------------
        Net cash provided by operations                                669,914,532     632,199,015
                                                                     ============== ===============

Cash used in investing activities:

  Increase in non current investments                                  ( 5,759,900)    ( 1,762,876)
  Acquisitions of property, plant and equipment                       (454,668,020)   (351,063,713)
  Additions of intangible assets                                          ( 46,773)       ( 71,516)
  Decrease in intangible assets (net)                                            -         411,784
                                                                     -------------- ---------------
Cash used in investing activities                                     (460,474,693)   (352,486,321)
                                                                     -------------- ---------------

Cash used in financing activities::

  Increase (decrease) in loans (net)                                   230,287,065    (103,411,499)
  Remittances made to Head Office (net)                               ( 21,582,772)   (213,324,919)
                                                                     -------------- ---------------
Cash used in financing activities                                      208,704,293    (316,736,418)
                                                                     -------------- ---------------

Net increase (decrease) in cash                                        418,144,132    ( 37,023,724)

Cash at the beginning of period (2)                                    249,407,237     383,294,098
                                                                     -------------- ---------------

Cash at the end of period (2)                                          667,551,369     346,270,374
                                                                     ============== ===============
*T

(1)

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It is made up of:
    Exchange gains/losses and other financial results
    relating to loans, account with Head Office and other               72,567,112        56,309,616
    deferred income tax benefit                                        (18,218,711)       (9,903,722)

    Total                                                               54,348,401        46,405,894
*T

(2) Cash and banks plus investments the expiry date of which is lower than three
months.

The accompanying notes and exhibits are an integral part of these financial
statements.

NOTE 1 - THE BRANCH

Pan American Energy LLC (Argentine Branch) is engaged in the exploration,
development and production of hydrocarbons.

On October 30, 1997, a definitive agreement for the transfer of assets and
liabilities was entered into between Amoco Argentina Oil Company (Argentine
Branch) and Pan American Energy LLC (Argentine Branch) hereinafter 'the Branch',
whereby Amoco Argentina Oil Company (Argentine Branch) transferred its business
consisting of assets and liabilities to the Branch, effective on October 8,
1997.

On May 1, 1998 a definitive agreement for the transfer of assets and liabilities
was entered into between Pan American Continental S.R.L. and the Branch, whereby
Pan American Continental S.R.L. transferred to the Branch its business
consisting of assets and liabilities except for the name Pan American
Continental.

NOTE 2 - OPERATIONS OF THE BRANCH

The following table summarizes the main operations, blocks and joint ventures in
which the Branch is involved for the three-month period ended March 31, 2007.

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                                                        Main blocks/                Ownership           Branch's
                   Activity                              operations                  interest        participation
-----------------------------------------------------------------------------------------------------------------------

Oil and gas production and development      Cerro Dragón                          100.00%        Operator
                                            Piedra Clavada                        100.00%        Operator
                                            Koluel Kaike                          100.00%        Operator
                                            Lindero Atravesado                    62.50%         Operator
                                            Anticlinal Funes                      80.00%         Operator
                                            Acambuco                              52.00%         Operator
                                            Aguada Pichana                        18.18%         Non operator
                                            San Roque                             16.47%         Non operator
                                            Estancia La Escondida (1)             25.00%         Non operator

Oil and gas exploration and development     Acambuco 'B'                          100.00%        Operator
                                            Río Barrancas                         100.00%        Operator
                                            Bandurria                             18.18%         Non operator
                                            Costa Afuera Argentina 'CAA-40'       50.00%         Non operator
                                            Costa Afuera Argentina 'CAA-46'       50.00%         Non operator
*T

Explanations:

(1) The Joint Venture agreement (UTE) governing the relationships between the
holders of concession states that their participating interests in rights,
obligations and interests inherent in the property including production, will be
distributed based on the depth from which production is obtained: in the deep
area, the Branch has a 75% interest and the co-holder has the remaining 25%; in
the shallow area from which current total production is obtained, the Branch has
a 25% interest and the co-holder the remaining 75%; and in the area
'Descubrimiento El Zanjón', both parties hold a 50% interest. The average
interest described grants the Branch a 50% interest in the rights over the
property, regardless the percentage thereof in the concession.

NOTE 3 - ACCOUNTING PRINCIPLES

3.1 Reporting currency

In accordance with Decree 664/2003 and General Resolution No. 441/2003 of the
National Securities Commission (the 'Comisión Nacional de Valores' or CNV), the
Branch discontinued the application of currency restatement as from March 1,
2003.

From January 1, 2002 to February 28, 2003, the Branch applied the restatement
methodology set forth by Technical Resolution No. 6, amended by Technical
Resolutions Nos. 17 and 19 of the Argentine Federation of Professional Councils
of Economic Sciences (FACPCE) and by the Professional Council of Economic
Sciences of the City of Buenos Aires (CPCECABA), using indexes derived from the
Internal Wholesale Price Index.

3.2 Valuation and presentation principles

a) Presentation

The financial statements are presented in accordance with the presentation
principles established by the accounting standards generally accepted in the
City of Buenos Aires and pursuant to the provisions of the CNV.

Investments to become due or to be realized in the short term (3 months) are
considered a cash equivalent in the statement of cash flows.

For comparative purposes, necessary reclassifications were made on prior-year
financial statements in order to present the figures on a consistent basis.

b) Participating interest in joint ventures

The Branch is engaged in exploration and production activities in certain areas
through its participation in joint ventures with other companies. The account
balances reflecting the joint ventures' assets, liabilities, income and expenses
are proportionately consolidated in these financial statements.

c) Foreign currency

Assets and liabilities denominated in foreign currency as listed in Exhibit F
have been stated in Argentine Pesos at the exchange rate prevailing at the end
of each period. The resulting exchange gains or losses are presented in the
financial results line (provided by either assets or liabilities, as applicable)
of the Statement of Income.

d) Inventories

Crude oil is stated at reproduction cost.

Spare parts, materials and raw materials are stated at the latest acquisition
cost.

Goods in transit are stated at acquisition cost plus import expenses.

Advances to suppliers are valued at the amounts actually incurred.

The carrying value of inventories, taken as a whole and after considering the
allowance for obsolescence (see Note 3.2.g), does not exceed their recoverable
value.

e) Property, plant and equipment

Property, plant and equipment is stated at acquisition cost as indicated in Note
3.1 less the related accumulated depreciation. The acquisition cost includes all
the necessary costs incurred in order to put the assets in working condition.

Depreciation is calculated by applying the straight-line method over the
estimated useful lives of the assets and/or the duration of the contracts, as
applicable, except for production wells, equipment and services, which are
depreciated per the units of production method.

The pre-operating costs of the properties in the exploration stage, except for
geology and geophysics related expenses that are charged to the Statement of
Income as incurred, remain capitalized for a given period based on the
characteristics of each property, without exceeding five years considered as
from the completion of the exploration stage or, if applicable, as from
production interruption, unless:

1. it is expected that explored areas will proceed to the commercial production
stage, in which case the referred costs remain capitalized, or

2. during the referred five year period, management estimates that commercial
production will not be feasible, in which case, the referred costs are expensed.

For property, plant and equipment existing as of January 6, 2002, the
acquisition or construction of which resulted in outstanding liabilities
denominated in foreign currency as of July 28, 2003, date on which Resolution CD
87/2003 of the CPCECABA was published, exchange gains/losses resulting from
restating such liabilities totaling $1,832,303,600 were capitalized pursuant to
specific accounting principles, based on the determination of the direct or
indirect ratio between the assets subject to capitalization and the outstanding
liabilities in foreign currency. The assets or group of assets eligible for the
capitalization of exchange gains/losses have remained unchanged. Such
capitalization of exchange gains/losses was performed in proportion to the
balance of the original value of the referred assets not subject to
depreciation. Additionally, exchange gains and losses were capitalized up to the
limit arising from the comparison between the replacement or reproduction cost
of the assets and their recoverable value.

For the purposes of presenting the financial statements in restated currency
(see Note 3.1), the capitalized exchange gains/losses amounting to $
1,832,303,600 are considered an anticipated currency restatement until such
differences are absorbed thereby. The excess of capitalized exchanges losses
over the restated amounts totals $ 85,358,131 as of March 31, 2007.

The Branch considers that the net carrying value of property, plant and
equipment, taken by group of assets of similar characteristics, does not exceed
their estimated value in use based on the information available as of the date
of issuance of these financial statements.

f) Intangible assets

These are pre-production geological expenditures and acquisition cost of blocks
valued at restated cost as indicated in Note 3.1., less the related accumulated
amortization. Amortization is calculated per the units of production method.

Deferred expenditures, mainly consisting of organization and system development
expenses, are amortized per the straight-line method over 5 and 3 years
respectively.

g) Allowances, provisions and accruals

Allowances deducted from assets:

- For bad debtors: they are determined following the detailed analysis of the
credit status of each customer.

- For obsolescence of materials: the Branch creates an allowance for those
assets evidencing significant slow movement based on a specific analysis.

Accruals included in liabilities:

- For lawsuits: they are determined considering the potential costs of those
lawsuits filed against the Branch based on the opinion of legal counsel.

Provisions included in liabilities:

- For future compensation of personnel: they are estimated as a percentage of
compensation paid, calculated in terms of actuarial methods, and can be applied
to compensate employees of the Branch who have complied with certain seniority
requirements defined by the Branch. Payments are debited from the related
provision.

- For environmental remediation: calculated on the basis of well-abandonment
forecasts until the expiration of agreements, at present values.

h) Income tax

The Branch applies the deferred tax method to account for income tax. Based on
the referred method, the current income tax is calculated by applying the rates
prevailing as of March 31, 2007 and 2006 on taxable income; and the future tax
effect of the tax loss carryforwards, if any, and the temporary differences in
the book and tax values of assets and liabilities is recognized as deferred tax
assets or liabilities.

The deferred tax assets are recognized only to the extent of their
recoverability.

i) Use of estimates

The preparation of the financial statements in accordance with generally
accepted accounting principles requires that the Management of the Branch makes
estimates about the value of certain assets and liabilities, including
contingent liabilities, as well as the amounts informed of certain income and
expenses.

The final present value of the transactions and items affected by these
estimates may differ from the estimated amounts.

j) Defined benefit plan

The Branch implemented a pension plan for the benefit of its personnel called
'Plan Puente' or 'Bridge Plan'. The amount accrued upon the implementation of
such plan amounts to

$ 101,442,251, ($ 97,036,602 as of December 31, 2006) presented under Other non
current liabilities, out of which the amount of $ 4,473,305 accrued in the
three-month period ended March 31, 2007 and is included in Other income and
expenses of the Statement of Income. Such amount is made up of $ 174,178,562 of
nominal value less $ 72,736,311 (financial effect from the discount to present
value).

k) Revenue recognition

Revenue derived from the sale of assets is recognized when the significant risks
and rewards of ownership have been transferred to the purchaser.

The Branch uses the production method to recognize revenues from the sale of
oil. In those cases where the Branch has a shared interest with other producers,
revenues are recorded upon the basis of the interest held in each joint venture.

In order to recognize revenues from the sale of gas, the Branch uses the sales
method, whereby these revenues are recognized regardless of the fact they are
the Branch's own production or output shared with other producers.

l) Lease agreements

The Branch leases the space occupied by its offices, which agreements are of an
operating nature and, therefore, the expenses incurred are recognized in the
statement of income as they accrue.

The amount of the leases, broken down by maturity dates, is reported below:

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                                                                                               Nominal value

Up to a year                                                                       US$ 2,566,364 and $ 181,556
Over one year and up to five years                                                 US$ 4,359,435
*T

During the quarter, the Branch recognized an expense of $ 2,202,015 related to
such lease agreements, presented in the line Buildings rentals and maintenance
in Exhibit G.

m) Enactment of new technical resolutions and other regulations

In line with General Resolution No. 487/2006 of the CNV, the Branch now
considers the currency restatement of property, plant and equipment as a
temporary difference for the purpose of the deferred tax calculation.
Consequently, at the beginning of the fiscal year 2006, an increase in the net
deferred tax liabilities amounting to $ 229,088,577 was recognized, as well as
an adjustment to prior year results (loss) presented as part of the Account with
Head Office (Note 7).

As required by Resolution No. 487/2006 of the CNV in connection with the
recoverable values of assets, we report that at the balance sheet date no
indicators exist that the carrying value of the assets exceeds the irrecoverable
value.

NOTE 4 - BREAKDOWN OF CERTAIN BALANCE SHEET ITEMS

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                                                                       03/31/2007        12/31/2006
                                                                    ------------------ ---------------
ASSETS
CURRENT ASSETS
a) Cash on hand and in banks
  Cash on hand in local currency                                              143,329         141,977
  Cash on hand in foreign currency (Exhibit F)                                156,668         232,722
  Cash in banks in local currency                                           3,532,408      24,481,235
  Cash in banks in foreign currency (Exhibit F)                             9,916,153       9,494,638
                                                                    ------------------ ---------------

  Total                                                                    13,748,558      34,350,572
                                                                    ================== ===============
b) Accounts receivable
  Accounts receivable in local currency                                    82,817,675      73,659,586
  Allowance for bad debtors in local currency (Exhibit D)                 ( 4,983,016)    ( 4,983,016)
  Accounts receivable in foreign currency (Exhibit F)                     465,212,566     682,872,598
  Affiliated companies in foreign currency (Note 9
and Exhibit F)                                                            145,946,345               -
  Allowance for bad debtors in foreign currency (Exhibits D
and F)                                                                   ( 14,206,277)   ( 14,029,859)
                                                                    ------------------ ---------------

  Total                                                                   674,787,293     737,519,309
                                                                    ================== ===============
*T

NOTE 4 - BREAKDOWN OF CERTAIN BALANCE SHEET ITEMS (Cont.)

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                                                                   03/31/2007          12/31/2006
                                                               ------------------- -------------------
ASSETS (Cont.)
CURRENT ASSETS (Cont.)
c) Other receivables
  Loans to personnel                                                    7,821,267           8,490,283
  Tax credits                                                          15,729,645          24,907,001
  Expenses recoverable in local currency                                7,286,835           7,310,337
  Expenses recoverable in foreign currency (Exhibit F)                  1,345,407           1,284,463
  Prepaid expenses in local currency                                    7,797,940           7,648,706
  Miscellaneous in local currency                                      31,684,709          39,819,127
  Miscellaneous in foreign currency (Exhibit F)                        18,714,448          28,032,599
  Affiliated companies in foreign currency (Note 9
and Exhibit F)                                                            563,718             399,282
                                                               ------------------- -------------------

  Total                                                                90,943,969         117,891,798
                                                               =================== ===================
d) Inventories
  Crude oil in stock                                                    2,575,321          69,704,063
  Spare parts, materials and raw materials                             50,435,684          47,997,293
                                                               ------------------- -------------------

  Subtotal                                                             53,011,005         117,701,356

  Allowance for obsolescence of materials (Exhibit D)                 ( 2,864,130)        ( 2,864,130)
                                                               ------------------- -------------------

  Subtotal (Exhibit E)                                                 50,146,875         114,837,226

  Goods in transit                                                      4,750,766           7,924,880
  Advances to suppliers in local currency                               4,475,936           7,765,719
  Advances to suppliers in foreign currency (Exhibit F)                     6,362             281,786
                                                               ------------------- -------------------

  Total                                                                59,379,939         130,809,611
                                                               =================== ===================
NON CURRENT ASSETS
e) Other receivables
  Loans to personnel                                                    4,501,016           3,837,996
  Advances to suppliers in local currency                               3,839,695           4,534,641
  Miscellaneous in local currency                                       6,462,582           6,517,545
  Miscellaneous in foreign currency (Exhibit F)                        14,831,971          14,025,263
                                                               ------------------- -------------------

  Total                                                                29,635,264          28,915,445
                                                               =================== ===================
*T

NOTE 4 - BREAKDOWN OF CERTAIN BALANCE SHEET ITEMS (Cont.)

-0-
*T
                                                                   03/31/2007         12/31/2006
                                                               ------------------ ------------------
LIABILITIES
CURRENT LIABILITIES
f) Accounts payable
  Trade payables in local currency                                    346,139,754        449,624,468
  Trade payables in foreign currency (Exhibit F)                      115,366,564        167,263,681
  Expenses payable in local currency                                   35,737,500         34,598,789
  Affiliated companies in foreign currency (Note 9 and
Exhibit F)                                                             10,163,050          9,977,411
                                                               ------------------ ------------------

  Total                                                               507,406,868        661,464,349
                                                               ================== ==================
g) Loans
  Affiliated companies in local currency (Note 9)                     460,290,844                  -
  Affiliated companies in foreign currency (Note 9 and
Exhibit F)                                                            266,055,862                  -
  Bonds in foreign currency (Exhibit F)                                         -        306,200,000
  Unsecured notes payable in local currency                           404,533,337        275,057,276
  Secured notes payable in foreign currency
(Exhibit F)                                                             2,130,509          4,172,593
  Unsecured notes payable in foreign currency
(Exhibit F)                                                           450,438,860        226,105,569
  Interest accrued on bonds and notes payable in
foreign currency (Exhibit F)                                           31,668,168         65,486,912
                                                               ------------------ ------------------

  Total                                                             1,615,117,580        877,022,350
                                                               ================== ==================
h) Taxes payable
  Income tax net of prepayments                                       438,332,056        391,273,549
  Miscellaneous                                                        62,089,492         73,884,392
                                                               ------------------ ------------------

  Total                                                               500,421,548        465,157,941
                                                               ================== ==================
NON CURRENT LIABILITIES
i) Accounts payable
  Miscellaneous liabilities in local currency                          35,182,537         15,707,663
  Miscellaneous liabilities in foreign currency (Exhibit F)            17,081,458         16,872,072
                                                               ------------------ ------------------

  Total                                                                52,263,995         32,579,735
                                                               ================== ==================
j) Loans
  Affiliated companies in local currency (Note 9)                               -        446,709,189
  Bonds in foreign currency (Exhibit F)                             1,085,000,000      1,071,700,000
  Unsecured notes payable in foreign currency
(Exhibit F)                                                           745,401,929        747,233,793
                                                               ------------------ ------------------

  Total                                                             1,830,401,929      2,265,642,982
                                                               ================== ==================
*T

NOTE 5 - BOND ISSUANCE

On July 13, 1995, Resolution No. 10982 of the CNV authorized the short and
medium term bond program submitted by the branch in Argentina of the foreign
corporation Amoco Argentina Oil Company in a total maximum amount of US$
200,000,000, nominal value.

In September 1995, Amoco Argentina Oil Company (Argentine Branch) issued the
First Series of bonds in the amount of US$ 100,000,000 due in ten years with an
interest rate of 6.63% p.a. Principal was repaid at maturity.

On February 11, 1997, Amoco Argentina Oil Company (Argentine Branch) issued the
Second Series of bonds in the amount of US$ 100,000,000 due in ten years.
Principal is to be repaid in a single payment at maturity and accrues interest
at a rate of 6.75% p.a. This issuance completes the maximum amount of the short
and medium term bond program referred to above.

The funds obtained from both bond issues were used to repay loans granted by
affiliated companies of Amoco Argentina Oil Company (Argentine Branch).

As a result of the transfer of assets and liabilities referred to in the second
paragraph of Note 1, Amoco Argentina Oil Company (Argentine Branch) transferred
the above mentioned bonds to Pan American Energy LLC (Argentine Branch). The
first and second series of these bonds were guaranteed until repayment in
September 2005 and February 2007 respectively, by BP Company North America Inc.

On February 21, 2002, through Resolution No. 14123, the CNV authorized the
Global Program for the Issuance of Bonds of Pan American Energy LLC (Argentine
Branch) (the 'Global Program') in the total amount of US$ 1,000,000,000. On
April 16, 2002, the Branch issued under this Global Program its Bonds Class 1 in
the amount of US$ 20,400,000 becoming due in two years (April 16, 2004) at an
annual 7.5% rate. These Bonds were paid upon maturity. On October 17, 2002, the
Branch issued Bonds Class 2, Sub-Class A in the amount of US$ 500,000 and
Sub-Class B in the amount of US$ 15,000,000 under the Global Program. These
bonds became due in two years (October 17, 2004) and accrued interest at a 7%
rate p.a. These Bonds were paid upon maturity. The funds obtained in the issues
under the Global Program were allocated to the Branch's working capital.

On October 27, 2004, the Branch issued Bonds Class 3 in the amount of US$
100,000,000 under the Global Program which become due in five years (October 27,
2009) with a 7.125% annual interest rate to be paid on a half-yearly basis. The
price of the issuance was 99.483%, nominal value. The funds derived from this
issuance were allocated to investments in property and equipment and the
repayment of loans.

On August 9, 2006, the Branch issued Bonds Class 4 in the amount of US$
250,000,000 under the Global Program, to be repaid in two equal installments
becoming due on February 9, 2011 and February 9, 2012, with interest accruing at
a fixed annual interest rate of 7.75% to be paid on a half-yearly basis. The
price of the issuance was 100.00% of the nominal value. The funds obtained in
this issue were allocated to investments in property and equipment, working
capital and repayment of loans.

NOTE 6 - OTHER FINANCIAL LIABILITIES

Pan American Energy LLC (Argentine Branch) obtained the following loans at a
five-year term, with interest compounded bi-annually amortized in monthly
installments: 1) On July 20, 2001, in the amount of US$ 72,051,406, with
interest accruing at an annual rate of 7.54%, with the first installment falling
due on April 19, 2002 and the repayment term being completed on June 20, 2006,
and 2) on September 17, 2001, in the amount of US$ 40,001,944, with interest
accruing at an annual rate of 6.72%, with the first installment falling due on
June 20, 2002 and completing repayment on August 21, 2006. For the purpose of
fixing the interest rate, the Branch has entered into integrated derivative
transactions, the impact of which has been included in the cost of the
transactions. Both loans have been guaranteed by Pan American Energy LLC until
the repayment thereof in June and August 2006.

On July 11, 2005, the Branch obtained from the International Finance Corporation
(IFC) a loan in the amount of US$ 250,000,000 guaranteed by Head Office and
consisting of three tranches:

-'A' in the amount of US$ 100,000,000, with interest accruing at an annual fixed
rate of 7.56%, through an interest rate swap with IFC, amortizable on six-month
basis and becoming due in July 2015;

- 'B' in the amount of US$ 135,000,000, at an annual fixed rate of 6.97%,
through an interest rate swap with IFC, amortizable on a six-month basis, and
becoming due in July 2012; and

- 'C' in the amount of US$ 15,000,000, at an annual fixed base rate of 5.66%
plus additional interest calculated in relation to Head Office's economic
performance, becoming due in July 2016.

As of December 31, 2005, the amount of the loans had been fully disbursed.

The first principal installment for tranches 'A' and 'B'was paid on January 15,
2007.

The funds obtained were used to partially fund the 2005 investment program in
the San Jorge Gulf.

The Branch considers that its access to credit lines is suitable in order to
that meet commercial and financial obligations which are expected to be honored,
despite the fact the working capital is negative.

NOTE 7 - ACCOUNT WITH HEAD OFFICE

The changes in the account with Head Office during the three-month periods ended
March 31, 2007 and 2006 have been the following:

-0-
*T
                                                                     Three-month period ended
                                                              ---------------------------------------
                                                                    03/31/2007            03/31/2006
                                                              ----------------- ---------------------

Balance at beginning of year with Head Office                    1,656,519,921         2,290,686,326
Adjustment to prior-year results (Note 3.2.m)                                -         ( 229,088,577)
                                                              ----------------- ---------------------
Balance at beginning of year with Head Office subsequent to
 adjustment                                                      1,656,519,921         2,061,597,749

Remittances made to Head Office - net                             ( 21,582,772)        ( 213,324,919)
Transfer of net income                                             359,292,904           449,880,599
                                                              ----------------- ---------------------
Net changes for the period                                         337,710,132           236,555,680
                                                              ----------------- ---------------------

Balance at period-end with Head Office (1)                       1,994,230,053         2,298,153,429
                                                              ================= =====================
*T

(1) As of March 31, 2007 and as of March 31, 2006 the balances are in local
currency.

NOTE 8 - CAPITAL ALLOCATED TO THE BRANCH

Pursuant to the Consent Action taken by the members on December 27, 2001, Pan
American Energy LLC allocated capital to the Branch in the amount of $
200,000,000. Such capital is registered with the Public Registry of Commerce. In
accordance with Consent Action dated February 1, 2005, Pan American Energy LLC
allocated capital to the Branch in the amount of $ 21,779,007. Such capital
contribution represents the contribution of assets and liabilities of the areas
Anticlinal Funes and Río Barrancas made by Head Office within the scope of the
corporate reorganization registered in the State of Delaware, USA and in the
Public Registry of Commerce of the City of Buenos Aires on December 12, 2005
under number 2106, Book 58, Volume B of Foreign Companies.

NOTE 9 - TRANSACTIONS AND BALANCES WITH AFFILIATED COMPANIES

The transactions and balances with Pan American Energy LLC, the Branch's Head
Office, are disclosed in note 7.

The transactions and balances with affiliated companies are detailed below:

-0-
*T
                                               2007               2006
                                         ----------------- ------------------
                                            (3 months)         (3 months)
TRANSACTIONS

   Pan American Fueguina S.A.
       Recovery of receivables                           -              2,094
       Financing (including interest)          279,637,517                  -

   Pan American Sur S,A,
       Loan of LPG                                 101,531                  -

   PAE E & P Bolivia Ltd,
       Purchases and hiring of services            167,217              9,283

   PAE Oil & Gas Bolivia Ltd,
       Purchases and hiring of services              2,781              4,249

   BP West Coast Products LLC
       Sales                                   317,839,999        461,842,517

   BP America Production Company
       Services                                  1,494,329          1,189,491


                                                03/31/2007         12/31/2006
                                         ----------------- ------------------
BALANCES
   Pan American Fueguina S.A.
       Accounts payable                                  -            899,281
       Loans                                   726,346,706        446,709,189

   Pan American Sur S,A,
        Accounts payable                         8,282,762          8,181,231

   PAE E & P Bolivia Ltd,
       Other receivables                           460,900            293,683

   PAE Oil & Gas Bolivia Ltd,
       Other receivables                           102,818            105,599

   BP West Coast Products LLC
       Accounts receivable                     145,946,345                  -

   BP America Production Company
       Accounts payable                          1,880,288            896,899
*T

NOTE 10 - GUARANTEES AND OTHER COMMITMENTS

In terms of investment commitments, the Branch has not granted any guarantees as
of March 31, 2007.

The terms agreed in certain loan agreements include commitments assumed by the
Branch referring to the maintenance of certain indebtedness and debt service
ratios and certain restrictions on the distribution of dividends. As of March
31, 2007, the Branch complied with all the commitments assumed in loan
agreements.

The Branch signed the agreement entered into between producers and refineries on
January 2, 2003 for the stability of the prices of crude oil, gasoline and gas
oil (Resolution No. 85/2003 of the Energy Department), in force until April 30,
2004. The Branch has complied with the quotas set forth in the crude oil
agreement. Such deliveries were stated at spot price upon carrying out the
transaction, giving rise to a receivable of $ 29,768,619 as March 31, 2007, in
favor of the Branch, contingent on the decrease in the crude oil WTI price to an
amount lower than US$28.50 per barrel. The price thereof was US$ 65.85 as of
March 31, 2007.

On February 27, 2006 the Branch executed an agreement with Shell C.A.P.S.A.
whereby Shell agreed to pay the Branch a total negotiated price of $86.499.326
in connection with deliveries of crude oil made in 2003 and 2004 under the price
stabilization agreement referred to in the preceding paragraph, and $ 14,032,834
as interest. The Branch agreed to waive further claims in connection with said
deliveries. The related income was recognized in the period ended March 31,
2006.

NOTE 11 - INCOME TAX

The breakdown of the main deferred tax assets and liabilities is as follows:

-0-
*T
                                                                      03/31/2007         12/31/2006
                                                             ------------------- ------------------

Deferred tax assets
   Allowance for materials obsolescence                                1,002,446          1,002,446
   Provision for future compensation to personnel                      4,392,615          4,296,053
   Allowance for lawsuits                                              7,215,666          7,082,362
   Provision for environmental remediation                            10,836,394          9,835,326
   Other provisions and allowances                                    18,379,763         18,174,616
                                                             ------------------- ------------------

Total deferred tax assets                                             41,826,884         40,390,803
                                                             ------------------- ------------------

Deferred tax liabilities
   Inventories - materials and spare parts                               962,248            962,248
   Property, plant and equipment and intangible assets               441,555,634        458,338,264
   Other                                                              23,041,425         23,041,425
                                                             ------------------- ------------------

Total deferred tax liabilities                                       465,559,307        482,341,937
                                                             ------------------- ------------------

Total deferred tax liabilities - net                                 423,732,423        441,951,134
                                                             =================== ==================
*T

The reconciliation between the income tax expense for the period and the
theoretical expense resulting from applying the prevailing tax rate to income
before tax is as follows:

-0-
*T
                                                                    2007                2006
                                                             ------------------- ------------------
                                                                 (3 months)           (3 months)

Net income before taxes                                              545,895,732        698,475,601

Prevailing tax rate                                                          35%                35%
                                                             ------------------- ------------------
Net income at prevailing tax rate                                  (191,063,506)      (244,466,460)

Permanent differences at the tax rate:
   Miscellaneous - net                                                 4,460,678       ( 4,128,542)
                                                             ------------------- ------------------

Subtotal permanent differences at the tax rate                         4,460,678       ( 4,128,542)
                                                             ------------------- ------------------

Income tax expense - total                                         (186,602,828)      (248,595,002)
                                                             =================== ==================

Current income tax expense                                         (204,821,539)      (258,498,724)
Deferred income tax benefit                                           18,218,711          9,903,722
                                                             ------------------- ------------------
                                                                   (186,602,828)      (248,595,002)
                                                             =================== ==================
*T

NOTE 12 - RESTRICTED ASSETS

In November 2006, the Branch collected the deposit made in the fiscal year 2003
as collateral for a loan from a foreign bank. As of March 31, 2006 it amounted
to US$ 2,505,878.

In May 2005, the Branch made a bank deposit in its own name as collateral for a
loan from a foreign bank. The deposit is held in an account pertaining to a bank
institution on behalf of the Branch in an amount that as of March 31, 2007 and
2006 was US$ 1,764,705.

Two generators were pledged in the amount of US$ 7,483,776 as collateral for
outstanding accounts payable, the balance of which as of March 31, 2007 is US$
687,261.

There are no other restricted assets.

NOTE 13 - INFORMATION ON LITIGATION AND OTHER SUPPLEMENTARY MATTERS

Lawsuits were filed against the Branch, particularly in courts in labor and
commercial matters. Based on the information available, Management and the legal
counsel of the Branch consider that the contingent liability that might arise
from such lawsuits would not have a material adverse effect on the financial
position of the Branch or the results of its operations.

NOTE 14 - SUBSEQUENT EVENTS

On April 27, 2007, Pan American Energy (PAE) entered with the Province of Chubut
into an investment commitment and an agreement to extend the term of the
exploration and production concessions granted to the Company in the areas known
as Cerro Dragón, located in the Golfo San Jorge basin.

The main commitments assumed by PAE under the agreement with Chubut are:

    --  Invest not less than 2,000 million US dollars until 2017, plus an
        additional 1,000 million US dollars during the period 2018-2027, in
        hydrocarbon exploration and production activities in the Cerro Dragón
        block.

    --  Apply as well 80 million US dollars to the exploration in the Centro
        Golfo San Jorge Marina offshore area located in San Golfo gulf. The
        exploration and eventually operation and development of the area will be
        performed through a joint venture with Petrominera Chubut, the energy
        company of the Province. If PAE makes discoveries suitable for a
        commercial development, it also agrees to invest 500 million US dollars
        until 2017 in the development of the area.

    --  Contribute to the province of Chubut the amount of 120 million US
        dollars, which will be applied by halves in order to set up a Provincial
        Fund for Infrastructure and a Fund for the Economic Diversification of
        San Jorge Gulf basin.

    --  Since the period during which the agreement is in force, PAE will make
        to the Province of Chubut a Special Contribution of 3% on net income
        generated by the concessions.

The agreement entered into involves a new horizon to sustain the increase in
production and reserves in an oil field such as Cerro Dragón, which has been
operated for several years. This new horizon shall allow addressing long-term
projects requiring sound investments, new technologies and teams of men and
women who are working for the future.

It is worth pointing out that the Government of the Province of Chubut has sent
the agreement to the Provincial Legislature for the related approval.

EXHIBIT A

PROPERTY, PLANT AND EQUIPMENT (in pesos)

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                                     Original values
                         ------------------------------------------------------------------------
                               At         Increases
                           beginning         for                                       At
Main account                of year      the period    Transfers     Decreases     period-end
------------------------ -------------- ------------- ------------ ------------ -----------------


Land and buildings           53,902,203        45,000      301,994            -        54,249,197
Plants, wells and
 exploration and
production facilities    12,045,371,439       416,087   66,221,234       34,209    12,111,974,551
Furniture and fixtures        8,090,645             -            -            -         8,090,645
Equipment                   130,526,906             -    5,397,078            -       135,923,984
Vehicles                     37,318,081             -       66,049       32,208        37,351,922
Work in progress            610,477,077   443,488,723 (71,986,355)            -       981,979,445
Advances to suppliers        24,040,065    10,718,210            -            -        34,758,275
                         -------------- ------------- ------------ ------------ -----------------

Total as of 03/31/2007   12,909,726,416   454,668,020            -       66,417    13,364,328,019
                         ============== ============= ============ ============ =================

Total as of 12/31/2006   11,215,074,160 1,714,133,505            -   19,481,249    12,909,726,416
                         ============== ============= ============ ============ =================

                                             Depreciation
                        ------------------------------------------------------
                                                                                     Net            Net
                          Accumulated                             Accumulated    Book Value     Book Value
                         at beginning                                 at            as of          as of
Main account                of year        Increases  Decreases   period-end      03/31/07       12/31/06
--------------------------------------- ------------ ----------- ------------- --------------- -------------
                                             (1) (2)

Land and buildings           25,181,488      813,685           -    25,995,173      28,254,024    28,720,715
Plants, wells and
 exploration and
production facilities     6,880,673,207  194,613,904       2,565 7,075,284,546   5,036,690,005 5,164,698,232
Furniture and fixtures        7,895,688       17,928           -     7,913,616         177,029       194,957
Equipment                   102,450,577    4,358,023           -   106,808,600      29,115,384    28,076,329
Vehicles                     23,037,300    1,187,720      32,208    24,192,812      13,159,110    14,280,781
Work in progress                      -            -           -             -     981,979,445   610,477,077
Advances to suppliers                 -            -           -             -      34,758,275    24,040,065
                        --------------- ------------ ----------- ------------- --------------- -------------

Total as of 03/31/2007    7,039,238,260  200,991,260      34,773 7,240,194,747   6,124,133,272
                        =============== ============ =========== ============= ===============

Total as of 12/31/2006    6,417,279,987  638,177,818  16,219,545 7,039,238,260                 5,870,488,156
                        =============== ============ =========== =============                 =============
*T

(1) See Exhibit G.

(2) See depreciation policies in Note 3.2.e)

EXHIBIT B

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

INTANGIBLE ASSETS (in pesos)

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                                Original values
                           ---------------------------------------------------------
                                At        Increases
                             beginning        for     Decreases for        At
       Main account           of year     the period   the period      period-end
-------------------------- ------------- ------------ ------------- ----------------

Pre-operating expenses and
 dry
wells                         48,740,915            -             -       48,740,915
Acquisition cost of blocks     6,487,247            -             -        6,487,247
Deferred charges              63,488,027       46,773             -       63,534,800
                           ------------- ------------ ------------- ----------------

Total as of 03/31/2007       118,716,189       46,773             -      118,762,962
                           ============= ============ ============= ================

Total as of 12/31/2006       118,299,083      417,106             -      118,716,189
                           ============= ============ ============= ================

                                           Amortization
                           ---------------------------------------------
                                                                              Net           Net
                            Accumulated                                   Book Value    Book Value
                           at beginning    For the      Accumulated at       as of         as of
       Main account           of year        period       period-end       03/31/07      12/31/06
-------------------------- ------------- ------------- ----------------- ------------- -------------
                                               (1) (2)
Pre-operating expenses and
 dry
wells                         48,300,969        70,798        48,371,767       369,148       439,946
Acquisition cost of blocks     6,276,829        47,783         6,324,612       162,635       210,418
Deferred charges              62,219,624       287,233        62,506,857     1,027,943     1,268,403
                           ------------- ------------- ----------------- ------------- -------------

Total as of 03/31/2007       116,797,422       405,814       117,203,236     1,559,726
                           ============= ============= ================= =============

Total as of 12/31/2006       114,582,363     2,215,059       116,797,422                   1,918,767
                           ============= ============= =================               =============
*T

(1) See Exhibit G.

(2) See amortization criteria in Note 3.2.f).

EXHIBIT C

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

OTHER INVESTMENTS (in pesos)

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                                                   Book           Book
                                                                  value           value
             Main account                                       03/31/2007     12/31/2006
                                                              -------------- ---------------

Short-term investments

Mutual funds in foreign currency (Exhibit F)                     256,555,406     215,056,665

   Class: Citi Institutional Liquid Reserves
   Quantity: 83,841,636 units
   Quoted value: US$ 1
   (US dollar)

Government securities
   Certificates evidencing payment of tax liability
   (Government of the Province of Chubut)
   Coupon No, 14                                                     286,596

Time deposits in local currency                                  396,960,809               -
                                                              -------------- ---------------

           Total short-term investments                          653,802,811     215,056,665
                                                              ============== ===============

Long-term investments

Government securities:
   Bonos de la República Argentina - discount bonds
   in pesos 5.83% final maturity in 2033
   Quantity: 4,821,350
   Face value: $ 1
   Quoted value: $ 1,4675                                          7,075,331       7,015,064
   GDP coupon in pesos
   Quantity: 14,306,676
   Face value: $ 1
   Quoted value: $ 0,1190                                          1,702,494       1,702,494

   Certificates evidencing payment of tax liability
   (Government of the Province of Chubut)
   Coupons Nos, 15 to 23                                           5,699,633               -

Shares:
   Garantizar S.A.
   Quantity: 2000
   Class: B
   Face value: $ 1                                                     2,000           2,000
                                                              -------------- ---------------

           Total long-term investments                            14,479,458       8,719,558
                                                              -------------- ---------------

           Total investments                                     668,282,269     223,776,223
                                                              ============== ===============
*T

EXHIBIT D

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

ALLOWANCES, PROVISIONS AND ACCRUALS (in pesos)

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                   Balances at    Increases      Decreases       Balances as of
                                    beginning      for the         for the          03/31/07
          Main account                of year       period          period
---------------------------------  ------------  ------------    -----------    ----------------

Deducted from current assets:

Allowance for bad debtors in
 local
currency                              4,983,016             -              -           4,983,016
Allowance for bad debtors in
 foreign
currency                             14,029,859       176,418 (1)          -          14,206,277
Allowance for obsolescence of
materials                             2,864,130             -              -           2,864,130
                                   ------------  ------------    -----------    ----------------

Total deducted from assets           21,877,005       176,418              -          22,053,423
                                   ============  ============    ===========    ================

Included in current liabilities:

Provision for future compensation
of personnel                          1,968,408        49,620 (2)          -           2,018,028
                                   ------------  ------------    -----------    ----------------

Subtotal current liabilities          1,968,408        49,620              -           2,018,028
                                   ------------  ------------    -----------    ----------------

Included in non current
 liabilities:

Accrual for lawsuits                 19,903,786       712,402 (3)          -          20,616,188
Provision for environmental
remediation                         122,553,250     1,663,770 (4)  3,058,635 (5)     121,158,385
Provision for future compensation
of personnel                          9,797,018       740,000 (6)    554,126 (7)       9,982,892
                                   ------------  ------------    -----------    ----------------

Subtotal non current liabilities    152,254,054     3,116,172      3,612,761         151,757,465
                                   ------------  ------------    -----------    ----------------

Total included in liabilities       154,222,462     3,165,792      3,612,761         153,775,493
                                   ============  ============    ===========    ================
*T

(1) Charges for the period. They are included in financial results provided by
assets, exchange gains/losses of the Statement of Income.

(2) Transfer from the non current provision for future compensation to
personnel.

(3) Charges for the period. It is made up of $ 523,976 included in production
costs (see Exhibit G) and $ 188,426 included in administrative expenses (see
Exhibit G) of the Statement of Income.

(4) Charges for the period. They are included in financial results provided by
liabilities in the Statement of Income.

(5) Uses for the period.

(6) Charges for the period. They are included in other income and expenses of
the Statement of Income.

(7) It is made up of compensations paid during the period in the amount of
$504,506 and the transfer referred to in line 2 in the amount of $ 49,620.

EXHIBIT E

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

COST OF SALES (in pesos)

for the three-month period beginning January 1, 2007 and ended March 31, 2007,
comparative with the same period of the prior year

-0-
*T
                                                               2007                 2006
                                                        -------------------- -------------------
                                                             (3 months)          (3 months)

Inventories at the beginning of year                            114,837,226         104,612,667

Purchases                                                        47,481,091          43,578,837

Production costs (Exhibit G)                                    562,356,360         484,892,339

Inventories at period-end                                      ( 50,146,875)       ( 59,699,462)
                                                        -------------------- -------------------

Cost of sales                                                   674,527,802         573,384,381
                                                        ==================== ===================
*T

EXHIBIT F

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

ASSETS AND LIABILITIES IN FOREIGN CURRENCY

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                                                     Amount                                Amount
                                                                       in                                    in
                                                                   Argentine                             Argentine
                                Amount and type of    Prevailing    currency      Amount and type of      currency
                                 foreign currency     exchange       as of         foreign currency        as of
                    Item         as of 03/31/2007        rate      03/31/2007      as of 12/31/2006      12/31/2006
----------------------------- ----------------------- ---------- -------------- ---------------------- --------------
                                   US$        Euros            $            (1)      US$       Euros              (2)
ASSETS

CURRENT ASSETS

Cash on hand and in banks
  Cash on hand                           -      4,370       4.09        17,880             -     4,370        17,419
                                    45,356          -       3.06       138,788        71,245         -       215,303
  Cash in banks
    Domestic                        19,729          -       3.06        60,372         3,472         -        10,491
    Foreign                      3,220,843          -       3.06     9,855,781     3,138,368         -     9,484,147

Investments
  Foreign mutual funds          83,841,636          -       3.06   256,555,406    71,163,688         -   215,056,665

Accounts receivable
  Domestic                      92,472,285          -       3.06   282,965,192   106,460,311         -   321,723,060
  Foreign                       59,557,965          -       3.06   182,247,374   119,506,796         -   361,149,538
  Foreign affiliated
   companies                    47,694,884          -       3.06   145,946,345             -         -             -
  Allowance for bad debtors    ( 4,642,574)         -       3.06  ( 14,206,277)  ( 4,642,574)        -  ( 14,029,859)

Other receivables
  Expenses recoverable -
   foreign                         439,675          -       3.06     1,345,407       425,037         -     1,284,463
  Miscellaneous - domestic         526,819          -       3.06     1,612,066     2,675,304         -     8,084,768
  Miscellaneous - foreign        5,589,014          -       3.06    17,102,382     6,600,871         -    19,947,831
  Foreign affiliated
   companies                       184,222          -       3.06       563,718       132,125         -       399,282

Inventories
  Advances to suppliers
    Foreign                          2,079          -       3.06         6,362        93,245         -       281,786
                              ------------- ---------            -------------- ------------- -------- --------------

  Total current assets         288,951,933      4,370              884,210,796   305,627,888     4,370   923,624,894
                              ------------- ---------            -------------- ------------- -------- --------------

NON CURRENT ASSETS

Other receivables
  Miscellaneous - domestic       4,847,049          -       3.06    14,831,971     4,641,053         -    14,025,263
                              ------------- ---------            -------------- ------------- -------- --------------

  Total non current assets       4,847,049          -               14,831,971     4,641,053         -    14,025,263
                              ------------- ---------            -------------- ------------- -------- --------------

  Total assets                 293,798,982      4,370              899,042,767   310,268,941     4,370   937,650,157
                              ============= =========            ============== ============= ======== ==============
*T

US$ = US dollars

(1) As per buyer exchange rate as of March 31, 2007.

(2) As per buyer exchange rate as of December 31, 2006.

EXHIBIT F

(Cont.)

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

ASSETS AND LIABILITIES IN FOREIGN CURRENCY

as of March 31, 2007 and as of December 31, 2006

-0-
*T
                                                                  Amount      Amount and        Amount
                                                                    in           type of          in
                                  Amount and type               Argentine       foreign       Argentine
                                         of        Prevailing    currency       currency        currency
                                  foreign currency exchange       as of          as of           as of
                    Item          as of 03/31/2007    rate      03/31/2007     12/31/2006     12/31/2006
--------------------------------- ---------------- ---------- -------------- -------------- ---------------
                                        US$                 $            (1)      US$                   (2)
LIABILITIES

CURRENT LIABILITIES

Accounts payable
  Trade - domestic                      33,667,513       3.10   104,369,289      37,552,721    114,986,434
  Trade - foreign                        3,547,508       3.10    10,997,275      17,072,909     52,277,247
  Affiliated companies - domestic        2,671,859       3.10     8,282,762       2,965,550      9,080,512
  Affiliated companies - foreign           606,545       3.10     1,880,288         292,913        896,899

Loans
  Affiliated companies - domestic       85,824,472       3.10   266,055,862               -              -
  Bonds - foreign                                -                        -     100,000,000    306,200,000
  Secured notes payable -
    foreign                                687,261       3.10     2,130,509       1,362,702      4,172,593
  Unsecured notes payable -
   domestic                             97,000,000       3.10   300,700,000               -              -
  Unsecured notes payable -
    foreign                             48,302,858       3.10   149,738,860      73,842,446    226,105,569
  Interest accrued on bonds and
   notes payable
    - foreign                           10,215,538       3.10    31,668,168      21,386,973     65,486,912
                                  ----------------            -------------- -------------- ---------------

  Total current liabilities            282,523,554              875,823,013     254,476,214    779,206,166
                                  ----------------            -------------- -------------- ---------------

NON CURRENT LIABILITIES

Accounts payable
  Miscellaneous liabilities -
   foreign                               5,510,148       3.10    17,081,458       5,510,148     16,872,072

Loans
  Bonds -
    Foreign                            350,000,000       3.10 1,085,000,000     350,000,000  1,071,700,000
  Unsecured notes payable -
    Domestic                            15,000,000       3.10    46,500,000               -              -
  Unsecured notes payable -
    Foreign                            225,452,235       3.10   698,901,929     244,034,550    747,233,793
                                  ----------------            -------------- -------------- ---------------

  Total non current liabilities        595,962,383            1,847,483,387     599,544,698  1,835,805,865
                                  ----------------            -------------- -------------- ---------------

  Total liabilities                    878,485,935            2,723,306,400     854,020,912  2,615,012,031
                                  ================            ============== ============== ===============
*T

US$ = US dollars

(1) As per seller exchange rate as of March 31, 2007.

(2) As per seller exchange rate as of December 31, 2006.

EXHIBIT G

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

INFORMATION REQUIRED BY ART. 64, CLAUSE 1b) OF LAW 19550, for the three-month
period beginning January 1, 2007 and ended March 31, 2007, comparative with the
same period of the prior year (in pesos)

-0-
*T
                                           Production   Administrative
  Items                                       cost          expenses        Total 2007     Total 2006
----------------------------------------  ------------- ---------------- --------------- --------------
                                                                           (3 months)      (3 months)

Fees and compensation for services            2,289,337        3,213,565       5,502,902      5,842,945
Salaries, wages and benefits to
personnel                                    30,371,316       10,129,125      40,500,441     32,484,403
Social security contributions                 3,220,538        1,915,803       5,136,341      5,580,243
Taxes, assessments and other tributes       175,542,691       27,648,328     203,191,019    198,051,610
Depreciation of property, plant and
 equipment (Exhibit A)                      199,227,833        1,763,427     200,991,260    152,776,659
Intangible asset amortization (Exhibit
 B)                                             405,814                -         405,814        624,291
Transportation, freight and storage
 expenses                                    35,671,294           20,083      35,691,377     25,141,026
Contracted services                          80,706,294          674,482      81,380,776     80,488,210
Travel and accommodation expenses             1,559,095        1,290,450       2,849,545      2,164,448
Building rentals and maintenance                337,020        2,952,374       3,289,394      3,473,494
Environmental remediation                     2,875,323                -       2,875,323      1,978,503
Lawsuits (Exhibit D)                            523,976          188,426         712,402      1,161,522
Production, exploration and
 administrative
  general expenses                           29,625,829        5,637,580      35,263,409     25,257,686
                                          ------------- ---------------- --------------- --------------

Total 2007 (3 months)                       562,356,360       55,433,643     617,790,003
                                          ============= ================ ===============

Total 2006 (3 months)                       484,892,339       50,132,701                    535,025,040
                                          ============= ================                 ==============
*T

EXHIBIT H

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

Balance sheet as of March 31, 2007 and as of December 31, 2006

TERMS, INTEREST RATES AND ADJUSTMENT CLAUSES OF SHORT-TERM INVESTMENTS, LOANS,
RECEIVABLES AND PAYABLES (in pesos)

-0-
*T
                              Investments                 Receivables
                      --------------------------- ---------------------------
                       03/31/2007    12/31/2006     03/31/2007    12/31/2006
                      ------------- ------------- -------------- ------------

Total amount without
an established term   1,704,494 (1)     1,704,494 78,087,874 (3)   61,217,175

To become due:

Up to 3 months          653,516,215   215,056,665    716,370,573  821,770,799
From 3 to 6 months                -             -        853,545    1,780,744
From 6 to 9 months                -             -        810,974    1,087,619
From 9 to 12 months         286,596             -        760,847      697,929
From 1 to 2 years         1,266,585             -      3,396,920    2,814,716
From 2 to 3 years         1,266,585             -      1,254,886      903,215
From 3 to 4 years         1,266,585             -        842,999      491,328
From 4 to 5 years         1,266,585             -        468,651      332,877
From 5 to 6 years           633,293             -         70,915       59,678
From 6 to 7 years                 -             -              -            -
From 7 to 8 years                 -             -              -            -
From 8 to 9 years                 -             -              -            -
From 9 to 10 years                -             -              -            -
Over 11 years         7,075,331 (2) 7,015,064 (2)              -            -
                      ------------- ------------- -------------- ------------

Subtotal                668,282,269   223,776,223    802,918,184  891,156,080

Other items that are
 not to be collected
 or paid in cash                  -             -     11,637,635   12,183,347
                      ------------- ------------- -------------- ------------

Total                   668,282,269   223,776,223    814,555,819  903,339,427
                      ============= ============= ============== ============

                               Payables                      Loans
                      --------------------------- ---------------------------
                       03/31/2007    12/31/2006    03/31/2007    12/31/2006
                      ------------- ------------- ------------- -------------

Total amount without
an established term     708,359,706   703,702,130             -             -

To become due:

Up to 3 months        1,008,472,966   746,810,041   650,561,874   793,674,710
From 3 to 6 months          504,507   391,765,651   434,387,762    12,719,548
From 6 to 9 months          504,507       492,102    10,564,800    59,108,848
From 9 to 12 months      22,803,607    22,356,302   519,603,144    11,519,244
From 1 to 2 years           220,240       215,609   204,327,929   614,032,179
From 2 to 3 years                 -             -   436,511,000   420,959,321
From 3 to 4 years                 -             -   495,922,500   111,306,762
From 4 to 5 years                 -             -   491,691,000   485,663,820
From 5 to 6 years                 -             -    69,316,000   485,663,820
From 6 to 7 years                 -             -    34,441,000    34,018,820
From 7 to 8 years                 -             -    34,441,000    34,018,820
From 8 to 9 years                 -             -    17,251,500    34,049,440
From 9 to 10 years                -             -    46,500,000    45,930,000
Over 11 years                     -             -             -             -
                      ------------- ------------- ------------- -------------

Subtotal              1,740,865,533 1,865,341,835 3,445,519,509 3,142,665,332

Other items that are
 not to be collected
 or paid in cash                  -             -             -             -
                      ------------- ------------- ------------- -------------

Total                 1,740,865,533 1,865,341,835 3,445,519,509 3,142,665,332
                      ============= ============= ============= =============
*T

(1) It includes $ 1,702,494 relating to GDP coupons in pesos. The government
securities linked to the GDP become due on 12/31/2035. However, in the event a
certain GDP rate growth is exceeded in the country, the bondholders shall be
entitled to annual payments.

(2) It is amortized as from 06/30/2024 in 20 semiannual installments (on 06/30
and 12/31 of each year), the final maturity of which is on 12/31/2033.

(3) It includes the overdue receivables detailed in item 3.a of the
supplementary information.

Translation from the original prepared in Spanish for publication in Argentina

EXHIBIT H

(Cont.)

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

Balance sheet as of March 31, 2007 and as of December 31, 2006

TERMS, INTEREST RATES AND ADJUSTMENT CLAUSES OF SHORT-TERM INVESTMENTS, LOANS,
RECEIVABLES AND PAYABLES (in pesos)

-0-
*T
                                       Investments                             Receivables
                           ------------------------------------ -----------------------------------------
                              03/31/2007         12/31/2006        03/31/2007           12/31/2006
                           ----------------- ------------------ ----------------- -----------------------
                           Rate     Pesos    Rate     Pesos     Rate     Pesos      Rate       Pesos
                           ----- ----------- ----- ------------ ----- ----------- -------- --------------

Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -        -              -
Annual fixed rate in US$       -           -     -            -     -           -     8,00      2,362,909
Annual fixed rate in $      4.00   5,986,229     -            -     -           -        -              -
Average annual variable
 rate in $                     -           -     -            -  8.00   8,998,833     8,00      7,906,016
Average annual variable
 rate in $                     -           -     -            -     -           -        -              -
Annual fixed rate in US$                                            -           -        -              -
Annual fixed rate in US$                                          8.5   1,157,555      8,5      1,079,127
Average annual variable
 rate in US$                   -           -     -            -     -           -        -              -
Average annual fixed rate
 in US$                                          -            -     -           -        -              -
Annual variable rate in
 US$                        5.25 256,555,406  5.26  215,056,665  4.50      21,432     4,50         28,574
Average annual fixed rate
 in $                       9.19 396,960,809     -                              -                       -
Annual fixed rate in $
 plus CER                   5.83   7,075,331  5.83    7,015,064     -           -        -              -
Non-interest bearing           -   1,704,494     -    1,704,494     - 804,377,999        -    891,962,801
                                 -----------       ------------       -----------          --------------

Total                            668,282,269        223,776,223       814,555,819             903,339,427
                                 ===========       ============       ===========          ==============

                                                Payables                                     Loans
                                  ------------------------------------- -----------------------------------------------
                                      03/31/2007         12/31/2006           03/31/2007              12/31/2006
                                  ------------------ ------------------ ----------------------- -----------------------
                                  Rate     Pesos     Rate     Pesos     Rate        Pesos       Rate        Pesos
                                  ---- ------------- ---- ------------- ----- ----------------- ----- -----------------

Annual fixed rate in US$             -             -    -             -     -                 -  6.75       306,200,000
Annual fixed rate in US$             -             -    -             - 7.125       310,000,000 7.125       306,200,000
Annual fixed rate in US$             -             -    -             -  7.00         2,130,509  7.00         4,172,594
Annual fixed rate in US$             -             -    -             -  5.45         5,634,576  5.45         5,565,507
Annual fixed rate in US$             -             -    -             -  6.18           189,596  6.18           187,272
Annual fixed rate in US$             -             -    -             -  7.56       292,779,500  7.56       306,200,000
Annual fixed rate in US$             -             -    -             -  6.97       383,625,000  6.97       413,370,000
Annual fixed rate in US$             -             -    -             -  5.66        46,500,000  5.66        45,930,000
Annual fixed rate in US$             -             -    -             -  8.00        31,000,000  8.00        30,620,000
Annual fixed rate in US$             -             -    -             -     -                 -  5.00        76,550,000
Annual fixed rate in US$             -             -    -             -  7.75       775,000,000  7.75       765,500,000
Annual fixed rate in $               -             -    -             -     -                 -     -                 -
Average annual variable rate in $    -             -    -             -  7.62       404,533,337  7.78       275,057,276
Average annual variable rate in $    -             -    -             -   8.5       460,290,844 10.25       446,709,189
Annual fixed rate in US$             -             -    -                 5.9       266,055,862     -                 -
Annual fixed rate in US$             -             -    -                   -                 -     -                 -
Average annual variable rate in
 US$                                 -             -    -             -  6.49        88,912,117  6.48        94,916,582
Average annual fixed rate in US$     -             -    -             -  5.48       347,200,000     -                 -
Annual variable rate in US$          -             -    -                   -                 -     -                 -
Average annual fixed rate in $       -             -    -                   -                 -     -                 -
Annual fixed rate in $ plus CER      -             -    -             -     -                 -     -                 -
Non-interest bearing                 - 1,740,865,533    - 1,865,341,835     -                 -     -                 -
                                       -------------      -------------       -----------------       -----------------

Total                                  1,740,865,533      1,865,341,835       (1) 3,413,851,341       (1) 3,077,178,420
                                       =============      =============       =================       =================
*T

(1) It only includes the principal at face value.

EXHIBIT I

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

Balance sheet as of March 31, 2007 and as of December 31, 2006

PARTICIPATION IN JOINT VENTURES (in pesos)

-0-
*T

                Lindero     Lindero     Aguada      Aguada        San         San                              Estancia
                                                                                                                 La
              Atravesado  Atravesado    Pichana     Pichana      Roque       Roque     Acambuco    Acambuco    Escondida
                62,50%      62,50%      18,18%      18,18%      16,47 %     16,47 %     52,00 %     52,00 %     25,00%
Balance sheet  03/31/2007  12/31/2006  03/31/2007  12/31/2006  03/31/2007  12/31/2006  03/31/2007  12/31/2006 03/31/2007
------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------


ASSETS
-------------
CURRENT
 ASSETS
-------------
Cash on hand
 and in banks   1,932,358       8,006     132,325     132,325      46,796      46,796   1,325,346     681,589      2,500
Other
 receivables      613,859     885,345   1,893,531   1,608,315      27,819      27,819   2,666,432   2,503,876    384,617
Inventories     7,051,917   5,608,560   7,685,751  10,779,553   8,435,877   8,325,385   2,751,721   1,881,612     79,727
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Total current
 assets         9,598,134   6,501,911   9,711,607  12,520,193   8,510,492   8,400,000   6,743,499   5,067,077    466,844
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

NON CURRENT
 ASSETS
-------------
Property,
 plant and
equipment     104,381,998 100,752,309 228,266,330 210,261,214 224,859,750 211,498,427 611,686,361 599,158,484  4,746,619
Intangible
 assets                 -           -       4,030       8,059           -           -           -           -    164,635
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Total non
 current
 assets       104,381,998 100,752,309 228,270,360 210,269,273 224,859,750 211,498,427 611,686,361 599,158,484  4,911,254
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Total assets  113,980,132 107,254,220 237,981,967 222,789,466 233,370,242 219,898,427 618,429,860 604,225,561  5,378,098
              =========== =========== =========== =========== =========== =========== =========== =========== ==========

                                                      Costa      Costa      Costa      Costa
                                                      Afuera     Afuera     Afuera     Afuera
                    Estancia                        Argentina  Argentina  Argentina  Argentina  Anticlinal Anticlinal
                      La
                    Escondida Bandurria  Bandurria  Bloque 40  Bloque 40  Bloque 46  Bloque 46    Funes      Funes
                     25,00%     18,18%     18,18%     50,00%     50,00%     50,00%     50,00%     80,00%     80,00%
Balance sheet      12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------


ASSETS
------------------
CURRENT ASSETS
------------------
Cash on hand and
 in banks               1,384    146,381     88,614          -          -          -          -      1,332      1,644
Other receivables     395,342     31,600     31,301     63,424     65,562     29,264     29,264  1,397,433  1,087,844
Inventories            76,352          -          -          -          -          -          -          -          -
                   ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total current
 assets               473,078    177,981    119,915     63,424     65,562     29,264     29,264  1,398,765  1,089,488
                   ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

NON CURRENT ASSETS
------------------
Property, plant
 and
equipment           5,090,205  2,029,948  4,519,810 11,175,237 11,175,237    588,337    588,337  2,346,207  2,262,167
Intangible assets     210,418          -          -          -          -          -          -          -          -
                   ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total non current
 assets             5,300,623  2,029,948  4,519,810 11,175,237 11,175,237    588,337    588,337  2,346,207  2,262,167
                   ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total assets        5,773,701  2,207,929  4,639,725 11,238,661 11,240,799    617,601    617,601  3,744,972  3,351,655
                   ========== ========== ========== ========== ========== ========== ========== ========== ==========
*T

EXHIBIT I

(Cont.)

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

Balance sheet as of March 31, 2007 and as of December 31, 2006

PARTICIPATION IN JOINT VENTURES (in pesos)

-0-
*T

                Lindero     Lindero     Aguada      Aguada        San         San                              Estancia
                                                                                                              La Escon-
              Atravesado  Atravesado    Pichana     Pichana      Roque       Roque     Acambuco    Acambuco      dida
                62,50%      62,50%      18,18%      18,18%      16,47%      16,47%      52,00%      52,00%      25,00%
Balance sheet 03/31/2007  12/31/2006  03/31/2007  12/31/2006  03/31/2007  12/31/2006  03/31/2007  12/31/2006  03/31/2007
------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

LIABILITIES
-------------
CURRENT
 LIABILITIES
-------------
Accounts
 payable        8,601,005   3,103,235  38,866,693  39,892,511  14,007,201  14,087,777  26,170,328  71,445,119    300,631
Payroll and
 social
 security
contributions     941,952     500,717           -           -           -           -     258,420     574,386          -
Taxes payable      14,824      85,849           -           -     317,385     307,032     724,630     899,221     98,143
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Total current
 liabilities    9,557,781   3,689,801  38,866,693  39,892,511  14,324,586  14,394,809  27,153,378  72,918,726    398,774
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

NON CURRENT
 LIABILITIES
-------------
Accounts
 payable        2,041,980   2,036,355     219,132     219,132     876,528     876,528   1,511,410   1,521,884          -
Provision for
 environ-
 mental
remediation     9,492,834   9,177,151   5,368,673   3,737,323   8,346,077   7,186,139   3,029,120   2,928,406    194,621
Accruals        5,333,838   5,137,832     377,748     365,027     333,969     325,076   2,179,775   2,098,309          -
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total non
 current
 liabilities   16,868,652  16,351,338   5,965,553   4,321,482   9,556,574   8,387,743   6,720,305   6,548,599    194,621
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

              -----------
Total
 liabilities   26,426,433  20,041,139  44,832,246  44,213,993  23,881,160  22,782,552  33,873,683  79,467,325    593,395
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Owners'
 equity        87,553,699  87,213,081 193,149,721 178,575,473 209,489,082 197,115,875 584,556,177 524,758,236  4,784,703
              ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------

Total         113,980,132 107,254,220 237,981,967 222,789,466 233,370,242 219,898,427 618,429,860 604,225,561  5,378,098
              =========== =========== =========== =========== =========== =========== =========== =========== ==========

                                                        Costa      Costa      Costa      Costa
                                                        Afuera     Afuera     Afuera     Afuera
                      Estancia                        Argentina  Argentina  Argentina  Argentina  Anticlinal Anticlinal
                        La
                      Escondida Bandurria  Bandurria  Bloque 40  Bloque 40  Bloque 46  Bloque 46    Funes      Funes
                       25,00%     18,18%     18,18%     50,00%     50,00%     50,00%     50,00%     80,00%     80,00%
Balance sheet        12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006 03/31/2007 12/31/2006
-------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

LIABILITIES
--------------------
CURRENT LIABILITIES
--------------------
Accounts payable        250,581    348,816    823,060          -          -          -     13,283  1,535,771  1,376,434
Payroll and social
 security
contributions                 -          -          -          -          -          -          -          -      1,928
Taxes payable            95,443          -          -          -          -          -          -      9,178     10,000
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total current
 liabilities            346,024    348,816    823,060          -          -          -     13,283  1,544,949  1,388,362
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

NON CURRENT
 LIABILITIES
--------------------
Accounts payable              -          -          -          -          -          -          -          -          -
Provision for
 environ-mental
remediation              92,200          -          -          -          -          -               956,559    972,617
Accruals                      -          -          -          -          -          -          -          -          -
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total non current
 liabilities             92,200          -          -          -          -          -          -    956,559    972,617
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total liabilities       438,224    348,816    823,060          -          -          -     13,283  2,501,508  2,360,979
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Owners' equity        5,335,477  1,859,113  3,816,665 11,238,661 11,240,799    617,601    604,318  1,243,464    990,676
                     ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Total                 5,773,701  2,207,929  4,639,725 11,238,661 11,240,799    617,601    617,601  3,744,972  3,351,655
                     ========== ========== ========== ========== ========== ========== ========== ========== ==========
*T

EXHIBIT I

(Cont.)

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

Statement of income for the fiscal period beginning January 1 and ended March
31, 2007, comparative with the same period of the prior year

PARTICIPATION IN JOINT VENTURES (in pesos)

-0-
*T

                    Lindero      Lindero       Aguada       Aguada        San          San
                   Atravesado   Atravesado    Pichana      Pichana       Roque        Roque
                     62,50%       62,50%       18,18%       18,18%       16,47%       16,47%
                      2007         2006         2007         2006         2007         2006
                  ------------ ------------ ------------ ------------ ------------ ------------
                   (3 months)   (3 months)   (3 months)   (3 months)   (3 months)   (3 months)
STATEMENT OF
 INCOME
-----------------
Sales (1)                    -            -            -            -            -            -
Cost of sales     (11,129,174) (10,359,201) (50,732,595) (38,417,576) (12,797,274) (10,523,265)
                  ------------ ------------ ------------ ------------ ------------ ------------

Gross results     (11,129,174) (10,359,201) (50,732,595) (38,417,576) (12,797,274) (10,523,265)
Administrative
 expenses                    -            -            -            -            -            -
                  ------------ ------------ ------------ ------------ ------------ ------------
Operating result  (11,129,174) (10,359,201) (50,732,595) (38,417,576) (12,797,274) (10,523,265)

Financial results
 - net              ( 120,487)   ( 358,322)    ( 54,238)    ( 37,140)   ( 103,617)    ( 85,200)
Other income and
 expenses - net        446,567       29,426       18,883     ( 6,766)       18,521     ( 8,348)
                  ------------ ------------ ------------ ------------ ------------ ------------

Net results       (10,803,094) (10,688,097) (50,767,950) (38,461,482) (12,882,370) (10,616,813)
                  ============ ============ ============ ============ ============ ============


                                             Estancia   Estancia
                                               La          La
                    Acambuco     Acambuco    Escondida  Escondida   Bandurria  Bandurria
                     52,00%       52,00%      25,00%     25,00%      18,18%     18,18%%
                      2007         2006        2007       2006        2007       2006
                  ------------ ------------ ---------- ----------- ----------- ---------
                                                                                  (3
                   (3 months)   (3 months)  (3 months) (3 months)  (3 months)   months)
STATEMENT OF
 INCOME
-----------------
Sales (1)                    -            -          -           -           -         -
Cost of sales     (44,507,849) (25,024,627)  (780,449) (1,150,529)           -         -
                  ------------ ------------ ---------- ----------- ----------- ---------

Gross results     (44,507,849) (25,024,627)  (780,449) (1,150,529)           -         -
Administrative
 expenses                    -            -          -           -           -         -
                  ------------ ------------ ---------- ----------- ----------- ---------
Operating result  (44,507,849) (25,024,627)  (780,449) (1,150,529)           -         -

Financial results
 - net               ( 18,756)   ( 110,816)     ( 988)   ( 11,160)    ( 1,205)        69
Other income and
 expenses - net        297,088 (26,460,504)          -           - (2,646,587) (182,239)
                  ------------ ------------ ---------- ----------- ----------- ---------

Net results       (44,229,517) (51,595,947)  (781,437) (1,161,689) (2,647,792) (182,170)
                  ============ ============ ========== =========== =========== =========

                   Costa     Costa     Costa      Costa
                    Afuera    Afuera    Afuera     Afuera
                  Argentina Argentina Argentina  Argentina  Anticlinal  Anticlinal
                  Bloque 40 Bloque 40 Bloque 46  Bloque 46     Funes       Funes
                   50,00%    50,00%    50,00%     50,00%      80,00%      80,00%
                    2007      2006      2007       2006        2007        2006
                  --------- --------- --------- ----------- ----------- -----------
                     (3        (3        (3
                   months)   months)   months)  (3 months)  (3 months)  (3 months)
STATEMENT OF
 INCOME
-----------------
Sales (1)                 -         -         -           -           -           -
Cost of sales             -         -         -           - (2,551,936) (3,416,062)
                  --------- --------- --------- ----------- ----------- -----------

Gross results                                             - (2,551,936) (3,416,062)
Administrative
 expenses                 -         -         -           -           -           -
                  --------- --------- --------- ----------- ----------- -----------
Operating result          -         -         -           - (2,551,936) (3,416,062)

Financial results
 - net                    -         -         -           -    ( 6,456)   ( 11,683)
Other income and
 expenses - net     852,941 (858,771)   239,893 (1,660,745)           -           -
                  --------- --------- --------- ----------- ----------- -----------

Net results         852,941 (858,771)   239,893 (1,660,745) (2,558,392) (3,427,745)
                  ========= ========= ========= ----------- =========== ===========
*T

(1) No sales were recorded in the joint ventures because production is directly
assigned to each participant.

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

FINANCIAL STATEMENTS AS OF March 31, 2007

REPORTING SUMMARY REQUIRED BY RESOLUTION No. 290/97 OF THE NATIONAL SECURITIES
COMMISSION

1. Comment on the Branch's activity

1.1. Operating activities

Pan American Energy LLC (Argentine Branch) is mainly engaged in the exploration,
development and production of hydrocarbons. The Head Office of the Branch is Pan
American Energy LLC, which also has various subsidiaries and affiliates that
carry out activities in Argentina and other Mercosur countries. BP and Bridas
Corporation hold interests that account for 60% and 40%, respectively of the
Branch's ownership.

As of March 31, 2007, with a daily average production of 211.9 thousand barrels
of oil, the Branch together with subsidiaries of Head Office rank second in the
production of natural gas and oil in Argentina.

1.2. Issuance of bonds

On July 13, 1995, Resolution No. 10982 of the CNV authorized the short and
medium term bond program submitted by the Argentine branch of the foreign
corporation Amoco Argentina Oil Company in a total maximum amount of US$
200,000,000, nominal value.

In September 1995, Amoco Argentina Oil Company (Argentine Branch) issued the
First Series of bonds in the amount of US$ 100,000,000 due in ten years with an
interest rate of 6.63% p.a. Principal was repaid at maturity.

On February 11, 1997, Amoco Argentina Oil Company (Argentine Branch) issued the
Second Series of bonds in the amount of US$ 100,000,000 due in ten years a rate
of 6.75% p.a., which were paid upon maturity. This issuance completes the
maximum amount of the short and medium term bond program referred to above.

The funds obtained from both bond issues were used to repay loans granted by
affiliated companies of Amoco Argentina Oil Company (Argentine Branch).

As a result of the transfer of assets and liabilities referred to in the first
paragraph of Point 1, Amoco Argentina Oil Company (Argentine Branch) transferred
the above mentioned bonds to Pan American Energy LLC (Argentine Branch). The two
series of these bonds were guranteed until repayment in September 2005 and
February 2007 respectively, by BP Company North America Inc.

On February 21, 2002, through Resolution No. 14123, the CNV authorized the
Global Program for the Issuance of Bonds of Pan American Energy LLC (Argentine
Branch) (the 'Global Program') in the total amount of US$ 1,000,000,000. On
April 16, 2002, the Branch issued under this Global Program its Bonds Class 1 in
the amount of US$ 20,400,000 becoming due in two years (April 16, 2004) at an
annual 7.5% rate. These Bonds were paid upon maturity. On October 17, 2002, the
Branch issued Bonds Class 2, Sub-Class A in the amount of US$ 500,000 and
Sub-Class B in the amount of US$ 15,000,000 under the Global Program. These
bonds became due in two years (October 17, 2004), accrued interest at a 7% rate
p.a. and were paid upon maturity. The funds obtained in the issues under the
Global Program were allocated to the Branch's working capital.

1.2. Issuance of bonds (cont.)

On October 27, 2004, the Branch issued Bonds Class 3 in the amount of US$
100,000,000 under the Global Program which become due in five years (October 27,
2009) with a 7.125% annual interest rate to be paid on a half-yearly basis. The
price of the issuance was 99.483%, nominal value. The funds derived from this
issuance were allocated to investments in property and equipment and the
repayment of loans.

On August 9, 2006, the Branch issued Bonds Class 4 in the amount of US$
250,000,000 under the Global Program, to be repaid in two equal installments
becoming due on February 9, 2011 and February 9, 2012, with interest accruing at
a fixed annual interest rate of 7.75% to be paid on a half-yearly basis. The
price of the issuance was 100.00% of the nominal value. The funds obtained in
this issue will be allocated to investments in property and equipment, working
capital and repayment of loans.

1.3. Loan agreements

Pan American Energy LLC (Argentine Branch) obtained the following loans at a
five-year term, with interest compounded bi-annually amortized in monthly
installments: 1) On July 20, 2001, in the amount of US$ 72,051,406, with
interest accruing at an annual rate of 7.54%, with the first installment falling
due on April 19, 2002 and the repayment term being completed on June 20, 2006,
and 2) on September 17, 2001, in the amount of US$ 40,001,944, with interest
accruing at an annual rate of 6.72%, with the first installment falling due on
June 20, 2002 and completing repayment on August 21, 2006. For the purpose of
fixing the interest rate, the Branch has entered into integrated derivative
transactions, the impact of which has been included in the cost of the
transactions. Both loans have been guaranteed by Pan American Energy LLC until
the repayment thereof in June and August 2006.

On July 11, 2005, the Branch obtained from the International Finance Corporation
(IFC) a loan in the amount of US$ 250,000,000 guaranteed by Head Office and
consisting of three tranches:

- 'A' in the amount of US$ 100,000,000, with interest accruing at an annual
fixed rate of 7.56%, through an interest rate swap with IFC, amortizable on
six-month basis and becoming due in July 2015;

- 'B' in the amount of US$ 135,000,000, at an annual fixed rate of 6.97%,
through an interest rate swap with IFC, amortizable on a six-month basis, and
becoming due in July 2012; and

- 'C' in the amount of US$ 15,000,000, at an annual fixed base rate of 5.66%
plus additional interest calculated in relation to Head Office's economic
performance, becoming due in July 2016.

As of December 31, 2005, the amount of the loans had been fully disbursed.

The first principal installment for tranches 'A' and 'B' was paid on January 15,
2007.

The funds obtained were used to partially fund the 2005 investment program in
the San Jorge Gulf.

2. Balance sheet items as of March 31, 2007 (in pesos)

-0-
*T
                                 Balance sheet   Balance sheet   Balance sheet  Balance sheet  Balance sheet
                                      as of           as of           as of          as of          as of
                                   03/31/2007      03/31/2006      03/31/2005     03/31/2004     03/31/2003
                                 --------------- --------------- -------------- -------------- --------------
Current assets                     1,492,662,570   1,326,318,306    742,909,657    382,351,028    470,042,940

Non current assets                 6,169,807,720   5,076,854,853  4,391,455,874  4,019,654,314  4,091,103,955
                                 --------------- --------------- -------------- -------------- --------------

Total                              7,662,470,290   6,403,173,159  5,134,365,531  4,402,005,342  4,561,146,895
                                 =============== =============== ============== ============== ==============

Current liabilities                2,647,403,167   1,803,904,364  1,414,276,014  1,222,640,937  1,044,829,265

Non current liabilities            2,559,598,063   1,839,876,359  1,317,731,414  1,523,204,123  1,804,065,951
                                 --------------- --------------- -------------- -------------- --------------

Subtotal                           5,207,001,230   3,643,780,723  2,732,007,428  2,745,845,060  2,848,895,216

Account with Head Office           1,994,230,053   2,298,153,429  1,941,119,096  1,216,700,282  1,272,791,679

Capital allocated to the Branch      221,779,007     221,779,007    221,779,007    200,000,000    200,000,000

Capital adjustment                   239,460,000     239,460,000    239,460,000    239,460,000    239,460,000
                                 --------------- --------------- -------------- -------------- --------------

Total                              7,662,470,290   6,403,173,159  5,134,365,531  4,402,005,342  4,561,146,895
                                 =============== =============== ============== ============== ==============
*T

3. Income statement items as of March 31, 2007 (in pesos)

-0-
*T
                             Three-month     Three-month    Three-month     Three-month     Three-month
                              period ended   period ended    period ended    period ended   period ended
                              03/31/2007     03/31/2006      03/31/2005      03/31/2004     03/31/2003
                            --------------- -------------- --------------- --------------- --------------
Ordinary operating income      627,727,111    791,067,389     414,146,484     304,287,339    308,185,518

Financial results             ( 75,180,641)  ( 32,504,397)     10,980,813      48,701,182   ( 34,989,375)

Other income and expenses -
 net                           ( 6,650,738)  ( 60,087,391)    ( 5,393,877)    ( 5,397,090)       282,064
                            --------------- -------------- --------------- --------------- --------------

Income before taxes            545,895,732    698,475,601     419,733,420     347,591,431    273,478,207

Income tax/minimum deemed
 income tax                   (204,821,539)  (258,498,724)   (141,343,582)   (111,520,511)  ( 43,028,989)

Deferred tax                    18,218,711      9,903,722     ( 6,435,344)   ( 19,319,285)    31,767,707
                            --------------- -------------- --------------- --------------- --------------

Net income                     359,292,904    449,880,599     271,954,494     216,751,635    262,216,925
                            =============== ============== =============== =============== ==============
*T

4. Statistical data

-0-
*T
                        Three-month     Three-month     Three-month     Three-month     Three-month
                        period ended    period ended    period ended    period ended    period ended
                         03/31/2007      03/31/2006      03/31/2005      03/31/2004      03/31/2003
                       --------------  --------------  --------------  --------------  --------------
                         In cubic        In cubic        In cubic        In cubic        In cubic
                           meters          meters          meters          meters          meters
                       --------------  --------------  --------------  --------------  --------------
Production of crude
 oil                        1,520,676       1,463,758       1,437,511       1,374,910       1,207,821
Sale of crude oil           1,608,722       1,664,392       1,576,430       1,343,936       1,206,902
*T

4. Statistical data (cont.)

-0-
*T
                        Three-month     Three-month     Three-month     Three-month     Three-month
                        period ended    period ended    period ended    period ended    period ended
                         03/31/2007      03/31/2006      03/31/2005      03/31/2004      03/31/2003
                       --------------  --------------  --------------  --------------  --------------
                        In thousand     In thousand     In thousand     In thousand     In thousand
                        cubic meters    cubic meters    cubic meters    cubic meters    cubic meters
                       --------------  --------------  --------------  --------------  --------------

Production of natural
 gas                        1,202,589       1,143,951         993,695         975,991         676,387
Sale of natural gas         1,256,209       1,113,939       1,015,515         883,738         641,651
Transportation of
 natural gas                    2,756          78,530          95,843          77,088          41,892
*T

-0-
*T
                          In tons         In tons        In tons         In tons         In tons
                       --------------  -------------  --------------  --------------  --------------

Production of L.P.G.           20,613         21,969          13,410          13,603          12,602
Sale of L.P.G.                 31,629         30,010              27          18,780          15,363
*T

5. Ratios

-0-
*T
                       Financial      Financial        Financial       Financial        Financial
                      statements      statements      statements       statements      statements
                         as of          as of            as of           as of            as of
                      03/31/2007      03/31/2006      03/31/2005       03/31/2004      03/31/2003
                     -------------  --------------  ---------------  --------------  ---------------

Current ratio                 0.56            0.74             0.53            0.31             0.45
Indebtedness                  2.12            1.32             1.14            1.66             1.66
Tied -up funds                0.81            0.79             0.86            0.91             0.90
Solvency                      0.47            0.76             0.88            0.60             0.60
*T

6. Business prospects

Pan American Energy LLC (Argentine Branch) is working to maintain and increase
its operating efficiency in connection with the oil and gas exploration and
production, to continue increasing its share in hydrocarbon production in
Argentina, satisfying in this way the energy needs derived from a sustained
growth rate of the country's economy. The Branch strives to provide its
personnel and contractors with healthy and safe working conditions while
preserving the environment.

Pan American Energy is strongly engaged with the concerns and challenges posed
by the communities where it operates, by developing different social
responsibility programs (CSR).

During the first three-month period of 2007, the Branch's oil production went up
by 3.8% and natural gas production grew by 5.1% with respect to the same period
of the prior year. This growth results from the active investment program
implemented by the Branch in the last years, which has led it to double
hydrocarbon production from 1999 to 2006.

After the 2002 crisis, the country has managed to achieve high GDP growth with
relatively low inflation rates and a stable currency. Although a decline has
been noted in unemployment rates, they are still high.

In the first quarter of 2007, the GDP rose by 8.2% with respect to the same
period of the prior year, which indicates that a growing trend - initiated 20
quarters ago - continues. It is expected that the GDP will grow by 7.6% in 2007.
The unemployment rate is approximately 9.7% and the inflation rate, measured
through the Consumer Price Index, was 2.2% in the first quarter of 2007.

With regard to tax matters, the National Government exceeded the primary fiscal
surplus expected for the first quarter of 2007 by 25%, reaching a primary fiscal
surplus of 5,087 million pesos, higher by 3.6% than that reached during the same
period of the prior year. The level of foreign indebtedness as of March 31, 2007
went down compared to the same date of the prior year. The level of the
country's international reserves increased to US$ 36,849 million as of March 31,
2007.

The increase in the oil industry costs is a source of concern for management,
since it clearly exceeds the general increase in prices.

As previously informed, revenues from the exploration and production of oil and
gas were affected by the amendments to the regulations in force. In the case of
oil, as from March 2002, an increasing rate of up to 45% of export tariffs on
exports has been applied, which has also affected the sales prices in the
domestic market. In the case of natural gas, in January 2002, the wellhead price
of natural gas was redenominated into pesos and frozen and, afterwards,
restrictions on exports were established. In April 2004, the Secretary of Energy
and the natural gas producers signed an agreement to tend to market the wellhead
prices. This agreement terminated on December 31, 2006 and at the request of the
related authorities, a new agreement allowing the recovery of a market
environment shall be reached.

On June 29, 2006, the National Government entered into an agreement with the
Republic of Bolivia for the purpose of importing gas from that country. The
agreement stated a price in the amount of US$ 5 per million BTU with a maximum
daily volume of 7.7 million cubic meters up to December 31, 2006. The referred
agreement provides for imports of an additional daily volume of approximately up
to 20 million cubic meters, once the so-called Noreste pipeline is built. On
July 25, 2006, the Ministry of Economy, through Resolution Nr. 534/2006,
increased tariffs rates on exports of gas to US$ 2.2 per million BTU.

Pursuant to Resolution 776 issued by the Argentine Ministry of Economy on
October 11, 2006, the national government provided for the retroactive
application of export tariffs on exports of hydrocarbons made from the Special
Customs Area of the Province of Tierra del Fuego. On January 15, 2007, Law 26217
was passed which, besides extending for a five-year term the application of
export tariffs on the export of hydrocarbons in general, imposes that such
export tariffs be applied on the exports made from the referred Special Customs
Area. The oil companies operating in this province consider that pursuant to the
provisions of Law No. 19640 that establishes a special regime applicable to
economic activities in Tierra del Fuego as well as other regulations, including
those that approved the concessions, the application of export tariffs on future
exports becomes a challengeable issue and that the retroactive application of
export tariffs becomes absolutely invalid and therefore these companies have
commenced all relevant actions before administrative authorities and the courts.

During the last quarter of 2006, unionized workers went on strike to demand the
elimination of income tax on their salaries. This strike affected the Branch's
business and had a partial impact on the drilling and production programs. Due
to the above-mentioned strikes, the National Government sent a bill to the
Congress which was subsequently passed, to exempt certain portions of the
salaries from income tax.

During the first quarter of 2007, even though generalized union conflicts
decreased and no general strikes took place, different claims were made by
contractors and, consequently, there were short interruptions of tasks at some
companies. The Union Federation of Private Oil Workers (Federación Sindical de
Petroleros Privados) has been claiming a restructure of basic salaries since mid
February; an issue which has not been solved to date.

For the fiscal year 2007, the Branch has projected to continue with its
investment plans with a view to expanding its business and contributing to
satisfying the growing energy demand. The commitments assumed referred to in the
following paragraphs strengthen these expansion plans.

Pan American Energy (PAE) entered into with the Province of Chubut an investment
commitment and an agreement to extend the term fixed for the exploration and
production concessions granted to the Company in the areas known as Cerro
Dragón, in San Jorge Gulf basin.

This is the first agreement for the extension of the term fixed for the
concessions that is reached under Law Nr. 26197, passed on December 6, 2006 and
promulgated on January 3, 2007, known as Ley Corta de Hidrocarburos. This rule
enforced the constitutional mandate consisting in transferring the ownership of
the natural resources located in the subsurface from the Federal state to the
producing provinces.

The main commitments assumed by PAE are as follows:

    --  PAE shall make an investment of at least 2,000 million US dollars until
        2017, plus 1,000 million additional US dollars during the period
        2018-2027, in hydrocarbon exploration and production activities in the
        Cerro Dragón area.

    --  PAE shall also destine 80 million US dollars to the exploration of the
        offshore area 'Centro Golfo San Jorge Marina', located in the Gulf
        bearing the same name. The exploration and eventual operation and
        development of the area shall be performed through a joint venture with
        Petrominera Chubut, the energy company of the Province. If PAE manages
        to make discoveries offering a commercial opportunity for development,
        it also agrees to invest 500 million US dollars until 2017 in the
        development of the area.

    --  PAE shall make to the province of Chubut the contribution of 120 million
        US dollars, which shall be allocated by halves in order to set up a
        Provincial Fund for Infrastructure and a Fund for the Economic
        Diversification of the San Jorge Gulf basin.

    --  Since the period during which the agreement is in force, PAE shall make
        to the Province of Chubut a Special Contribution of 3% on net income
        generated by the concessions.

    --  In the field of Corporate Social Responsibility, PAE will extend its
        considerable commitments on education and development of regional small
        and medium-sized companies by means of a number of university
        scholarship programs in the country and abroad and a significant
        extension of its development programs for domestic companies.

The agreement entered into involves a new horizon to sustain the increase in
production and reserves in an oil field such as Cerro Dragón, which has been
operated for several years. This new horizon shall allow addressing long-term
projects requiring sound investments, new technologies and teams of men and
women who are working for the future.

It is worth pointing out that the Government of the Province of Chubut has sent
the agreement to the Provincial Legislature for the related approval.

Buenos Aires, May 10, 2007

Daniel Grinstein

Attorney in-fact

PAN AMERICAN ENERGY LLC (ARGENTINE BRANCH)

FINANCIAL STATEMENTS AS OF March 31, 2007

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS AS OF MARCH 31, 2007
REQUIRED BY SECTION 68 OF THE REGULATIONS OF THE BUENOS AIRES STOCK EXCHANGE

Overall issues about the Branch's activity:

1. Specific and significant legal requirements which imply contingent
suspensions or changes of benefits provided for by such regulations:

The Branch is not subject to specific and significant legal requirements, which
may imply the contingent suspension or change of benefits provided for by such
regulations, except as disclosed in notes to the financial statements.

2. Significant changes in the Branch's activities or other similar circumstances
that affect the comparison of the financial statements with prior years', or
with those to be presented in future years.

There are no changes in the Branch's activities that significantly affect the
comparison of the financial statements as of March 31, 2007.

3. Breakdown of receivables and payables as per section 68, subsection 3

3.a) The breakdown of receivables and payables based on the maturity thereof is
disclosed in Exhibit H to the financial statements.

The following receivables without any established term included in the referred
Exhibit H are due:

-0-
*T
                                                  Current receivables
                                                           $
                                                 ----------------------

   Due from January to March 2007                             8,758,939
   Due from October to December 2006                         12,710,389
   Due from July to September 2006                            9,739,277
   Due from April to June 2006                                5,524,750
   Due from April 2005 to March 2006                         11,186,303
   Due from April 2004 to March 2005                          7,045,134
   Due from April 2003 to March 2004                          1,779,453
   Due from April 2002 to March 2003                          1,328,822
   Due from April 2001 to March 2002                            184,294
   Due from April 2000 to March 2001                             69,315
                                                 ----------------------

                    Total                                    58,326,676
                                                 ----------------------
*T

There are no overdue payables.

3.b) In connection with the receivables and payables in foreign currency, see
Exhibit F to the financial statements. There are no significant receivables and
payables represented by securities.

3.c) There are no receivables and payables subject to adjustment clauses.

3.d) In connection with the receivables and payables that accrue interest as of
March 31, 2007, see Exhibit H to the financial statements.

4. Corporations Art. 33 Law 19550

None.

5. Receivables or loans with directors, statutory auditors, and relatives
including up to the second degree:

None as of the date of issuance of these financial statements.

6. Physical counts of inventories

Based on the nature of the activity, the Branch carries out physical counts of
most of its inventories. There are no significant slow-moving inventories as of
March 31, 2007 for which an allowance has not been set up.

7. Current values

The valuation method of inventories is disclosed in Note 3.2.d) to the financial
statements.

8. Property, plant and equipment

No items of property, plant and equipment have been subject to appraisal.

To date, there are no property, plant and equipment items that are not in use
due to obsolescence.

9. Interests in other companies

None. The Branch's participating interests in joint operations and other
entities are disclosed in Note 2 to the financial statements.

10. Recoverable value

The recoverable value of inventories and fixed assets, used as a limit to their
valuation for financial reporting purposes, have been determined based on the
net realizable values and values in use, the latter defined as the expected net
cash flows that would result from both the use of the assets and the disposal
thereof at the end of their useful life.

11. Insurance

As of March 31, 2007 the insurance taken on the Branch's assets are as follows:

-0-
*T
                                                                                   Covered
                 Insured assets                          Insured risk              amount
--------------------------------------------------------------------------------------------------
                                                                                Thousand US$

Equipment, facilities and pipelines
  applied to exploitation and transportation  Physical damage                              288,274

Equipment, facilities and pipelines
  applied to exploitation and transportation  Liability insurance                           10,000

Wells                                         Control, re-drilling, spill                   25,000
*T

Additionally, the Branch has taken the following policies: workers compensation
insurance, directors and officers liability insurance and automobile liability
insurance.

12. Negative and positive contingencies

To calculate the related accruals, all available elements of judgment and
probability of occurrence have been considered (see Notes 10, 13 and Exhibit D
to the basic financial statements).

13. Contingent events as of the date of issuance of the financial statements
with moderate probability of occurrence, the financial effects of which have not
been fully recorded as of March 31, 2007

None.

Irrevocable advances for future subscriptions

14. As of March 31, 2007, there are no irrevocable advances for future
subscriptions.

15. There are no preferred shares as of the date of issuance of these financial
statements.

16. As of the date of issuance of these financial statements, the Branch has no
restrictions on the distributions of earnings, except as indicated in Note 10.

Buenos Aires, May 10, 2007

Daniel Grinstein

Attorney in-fact
                                                                            

a d v e r t i s e m e n t