Exhibit 15.5


PAN AMERICAN ENERGY CHILE








Estimated




Future Reserves and Income




Attributable to the




100 Percent Working Interest in the




Coiron Block, Chile










SEC Parameters








As of




December 31, 2011






/s/ Guale RamírezGuale Ramírez, P.E.


TBPE License No. 48318


Managing Senior Vice President






RYDERSCOTTCOMPANY,L.P.


TBPEFirmRegistrationNo.F-1580



















RYDER SCOTT COMPANY     PETROLEUM CONSULTANTS












PAN AMERICAN ENERGY CHILE
 
 TABLE OF CONTENTS











DISCUSSIONDISCUSSION LETTERPROFESSIONAL QUALIFICATIONS OF PRIMARY TECHNICAL PERSONSUMMARY OF DEVELOPMENT COSTS
TABLE APETROLEUM RESERVES DEFINITIONSSUMMARY OF GROSS AND NET RESERVES AND INCOME DATA
TABLE BGRAND SUMMARY PROJECTIONS
1-3FIELD AND PROPERTY PROJECTIONS
4-11l









–









RYDER SCOTT COMPANYPETROLEUM CONSULTANTSTBPEREGISTERED ENGINEERINGARM F-1580

FAX (713) 651-08491100 LOUISIANASUITE3800
HOUSTON,TEXAS77002-5235
TELEPHONE(713)651-9191






February 17, 2012




Pan American Energy LLC
 Mr. Carlos Bulgheroni, CEO and
 Mr. Alejandro P. Bulgheroni, Chairman
 Leandro N. Alem 1180
 1001 Buenos Aires, Argentina
  Gentlemen:
  At the request of Pan American Energy, LLC (Pan American), we have prepared an estimate of the proved, probable and possible reserves,future production, and income attributable to the 100 percent working interests of the properties addressed in this report as of December 31, 2011.The net reserves and income data, which are based on a 100 percent working interest as shown herein are greater than Pan American's net interest in the properties. The subject properties are located in the Austral Magallanes Basin, in the country of Chile and include the Coiron Block.The proved reserves were estimated based on the definitions and disclosure guidelines contained in the United States Securities and Exchange Commission Title 17, Code of Federal Regulations, Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register (SEC regulations). The probable and possible reserves were estimated based on the definitions and disclosure guidelines contained in the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), American Association of Petroleum Geologists (AAPG), and Society of Petroleum Evaluation Engineers (SPEE) Petroleum Resources Management System (SPE-PRMS). The income data were estimated using the Securities and Exchange Commission (SEC) requirements for future price and cost parameters.  The results of our third party study, completed on February 3, 2011, are presented herein.
  Based on the information provided by Pan American, the proved, probable, and possible reserves summarized in our report represent 100 percent of the total net proved, 100 percent of the total net probable and 100 percent of the total net possible reserves on a barrel equivalent basis, in the Coiron Block.
  The estimated reserves and future income amounts presented in this report, as of December 31, 2011, are related to hydrocarbon prices.The hydrocarbon prices used in the preparation of this report are based on SEC parameters using the average prices during the 12-month period prior to the ending date of the period covered in this report, determined as unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period, unless prices were defined by contractual arrangements as required by the SEC regulations. Actual future prices may vary significantly from the prices required by SEC regulations; therefore, volumes of reserves actually recovered and the amounts of income actually received may differ significantly from the estimated quantities presented in this report. The results of this study are summarized below.
   SUITE 600,1015 4TH STREET,S. W.
CALGARY,ALBERTA T2R 1J4
TEL (403) 262-2799
FAX (403) 262-2790621 17THSTREET.SUITE1550
DENVER,COLORADO80293-1501
TEL(303) 623-9147
FAX (303) 623-4258


Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 2




PROVED RESERVES-SEC DEFINITIONS


Estimated Net Reserves and Income Data


SEC Price and Cost Parameters


For the Coiron Block, Chile – 100 Percent Working Interest


AsofDecember31,2011


TotalProvedNet Remaining Reserves
UndevelopedOil/Condensate – Barrels
752,727Income Data ($M)Future Gross Revenue
$64,734Deductions
33,354Future Net Income (FNI)
$31,380Discounted FNI @10%
$15,461




PROBABLE AND POSSIBLE RESERVES - SPE-PRMS DEFINITIONS
 Estimated Net Reserves and Income Data
 SEC Price and Cost Parameters
 FortheCoironBlock, Chile–100PercentWorkingInterest
 AsofDecember31,2011
 Total
TotalProbable
PossibleUndeveloped
UndevelopedNet Remaining ReservesOil/Condensate – Barrels
224,808
259,564Income Data($M)Future Gross Revenue
$19,333
$22,322Deductions
7,134
7,634Future Net Income (FNI)
$12,199
$14,688Discounted FNI @10%
$7,434
$8,043




Liquid hydrocarbons are expressed in standard 42 gallon barrels. Oil reserves account for 100 percent of the total future gross revenue from proved reserves. The associated gas to be produced from the subject properties will not be marketed and therefore only the oil volumes are reported as reserves in this report. In this report, the revenues, deductions, and income are expressed as thousands of U.S. dollars ($M).
 The estimates of the reserves, future production, and income attributable to properties in this report were prepared using the economic software package AriesTM System Petroleum Economic Evaluation Software, a copyrighted program of Halliburton. Ryder Scott has found this program to be generally acceptable, but notes that certain summaries and calculations may vary due to rounding and
  RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS
 
 Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 3


may not exactly match the sum of the properties being summarized. Furthermore, one line economic summaries may vary slightly from the more detailed cash flow projections of the same properties, also due to rounding. The rounding differences are not material.
  The future gross revenue is not subject to production taxes. The deductions incorporate the normal direct costs of operating the wells, development costs, royalty payments and certain abandonment costs net of salvage. The future net income is before the deduction of Chilean federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment for cash on hand or undistributed income.
  The discounted future net income shown above was calculated using a discount rate of10 percent per annum compounded monthly. Future net income was discounted at four other discount rates which were also compounded monthly. These results are shown in summary form as follows.
  Discounted Future Net Income ($M)
As of December 31,2011Discount Rate
Total
Total
TotalPercent
Proved
Probable
Possible9
$16,598
$7,785
$8,50115
$10,733
$5,958
$6,17020
$7,208
$4,828
$4,81125
$4,511
$3,941
$3,796




The results shown above are presented for your information and should not be construed as our estimate of fair market value.
 
 Reserves Included in This Report
 
 The proved reserves included herein conform to the definition as set forth in the Securities and Exchange Commission's Regulations Part 210.4-10(a). The probable reserves and possible reserves included herein conform to definitions of probable and possible reserves sponsored and approved by the Society of Petroleum Engineers (SPE), the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE) as set forth in the 2007SPE/WPC/AAPG/SPEE Petroleum Resources Management System (SPE-PRMS). An abridged version of the SEC proved reserves definitions from 210.4-10(a) and the SPE/WPC/AAPG/SPEE probable and possible reserves from the SPE-PRMS entitled "Petroleum Reserves Definitions" is included as an attachment to this report.
  The various reserve status categories are defined in the attachment to this report entitled "Reserves Status Definitions and Guidelines."
 
 While it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may also increase or decrease from existing levels, such changes were omitted from consideration in making this evaluation.
 
 Proved oil and gas reserves are "those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward". Probable reserves are those additional reserves that are less
 
 RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS
 Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 4







certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.  Possible reserves are those additional reserves which are less certain to be recovered than probable reserves and thus the probability of achieving or exceeding the proved plus probable plus possible reserves is low. The reserves included herein were estimated using deterministic methods and presented as incremental quantities.  Under the deterministic incremental approach, discrete quantities of reserves are estimated and assigned separately as proved, probable or possible based on their individual level of uncertainty.




The reserves and income quantities attributable to the different reserve classifications that are included herein have not been adjusted to reflect these varying degrees of risk associated with them and thus are not comparable. Moreover, estimates of reserves may increase or decrease as a result of future operations, effects of regulation by governmental agencies or geopolitical risks. As a result, the estimates of oil and gas reserves have an intrinsic uncertainty. The reserves included in this report are therefore estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if recovered, the revenues therefrom and the actual costs related thereto could be more or less than the estimated amounts.





The reserves reported herein are limited to the period prior to expiration of current contracts providing the legal right to produce or a revenue interest in such production unless evidence indicates that contract renewal is reasonably certain.  Furthermore, properties in the country of Chile may be subjected to significantly varying contractual fiscal terms that affect the net revenue to Pan American for the production of these volumes. The prices and economic return received for these net volumes can vary significantly based on the terms of these contracts. Ryder Scott has not conducted an exhaustive audit or verification of such contractual information.  Our acceptance of Pan American's representations regarding such contractual information should not be construed as a legal opinion on this matter.





Ryder Scott did not evaluate country and geopolitical risks in the country of Chile, where the subject properties are located.  Pan American's operations may be subject to various levels of governmental controls and regulations. These controls and regulations may include matters relating to land tenure, drilling, production practices, environmental protection, marketing and pricing policies, royalties, various taxes and levies including income tax, and foreign trade and investment and are subject to change from time to time.  Such changes in governmental regulations and policies may cause volumes of reserves actually recovered and amounts of income actually received to differ significantly from the estimated quantities.





The estimates of reserves presented herein were based upon a detailed study of the properties in which Pan American owns an interest; however, we have not made any field examination of the properties.  No consideration was given in this report to potential environmental liabilities that may exist nor were any costs included for potential liability to restore and clean up damages, if any, caused by past operating practices.





Estimates of Reserves





The reserves included in this report are attributable to the Los Cerros field, located in the Coiron Block, and are specifically related to the Upper and Lower Turbidite formations in this field.  One well, the Los Cerros No. 1, was drilled in this field.  The subject well tested oil from both Turbidite formations. The Los Cerros No.1 well will not be completed for production and therefore all the reserves included in this report are classified as undeveloped.







RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS
 
 Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 5







The subject properties have not been developed for production as of the date of this report, but according to Pan American, will be developed starting in year 2012 with initial production expected also in year 2012. Reserves attributable to the proved, probable and possible undeveloped categories included herein were estimated by the volumetric method, which utilized all pertinent well and seismic data available through December, 2011.





There are other potentially recoverable hydrocarbon volumes in the Coiron Block which were classified as contingent resources and as a result are not included in this reserves report.





To estimate economically recoverable oil and gas reserves and related future net cash flows, we consider many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on current costs and SEC pricing requirements, and forecasts of future production rates. Under the SEC regulations 210.4-10(a)(22)(v) and (26), proved reserves must be demonstrated to be economically producible based on existing economic conditions including the prices and costs at which economic producibility from a reservoir is to be determined as of the effective date of the report. We have applied the same criteria for economic producibility to the probable and possible reserves included in this report. Pan American has informed us that they have furnished us all of the accounts, records, geological and engineering data, and reports and other data required for this investigation. In preparing our forecast of future production and income, we have relied upon data furnished by Pan American with respect to property interests owned, production and well tests from examined wells, normal direct costs of operating the wells or properties, other costs such as transportation and/or processing fees, royalty payments, recompletion and development costs, abandonment costs after salvage, product prices based on the SEC regulations, geological structural and isochore maps, well logs, core analyses, and pressure measurements. Ryder Scott reviewed such factual data for its reasonableness; however, we have not conducted an independent verification of the data supplied by Pan American.





Table B presents a one-line summary of gross and net reserves and income data for each of the subject properties.Tables 1 through 11 present our estimated projections of production and income by years beginning January 1, 2012, as summarized for the entire Coiron Block and by well.





Future Production Rates





Our forecasts of future production rates are based on the well test data provided for the Los Cerros No. 1 well. These test data and other related information were used to estimate the anticipated initial production rates for the future wells that are not currently producing. Production was forecast to decline exponentially from the initial production rate to recover the volumetrically estimated reserves for each forecasted well. For these reserves which are not yet on production, sales were estimated to commence at an anticipated date furnished by Pan American.





The future production rates from these undeveloped future wells may be more or less than estimated because of changes in market demand or allowables set by regulatory bodies.Furthermore, these locations may start producing earlier or later than anticipated in our estimates.





Hydrocarbon Prices




Pan American provided us with the oil prices used in this report.Pan American has assured us that the oil prices used herein are based on SEC price parameters using the average prices during the







RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS
 
 Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 6







12-month period prior to the ending date of the period covered in this report, determined as the unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period, unless prices were defined by contractual arrangements. The oil prices which were actually used for each property reflect adjustment for gravity, quality, local conditions, and/or distance from market.





The effects of derivative instruments designated as price hedges of oil quantities are not reflected in our individual property evaluations.





Costs










Development costs were furnished to us by Pan American and are based on authorizations for expenditure for the proposed work or actual costs for similar projects. The estimated net cost of abandonment after salvage was included for properties where abandonment costs net of salvage were significant. The estimates of the net abandonment costs furnished by Pan American were accepted without independent verification. Ryder Scott has not performed a detailed study of the abandonment costs or the salvage value and makes no warranty for Pan American's estimates.





Because of the direct relationship between volumes of proved, probable and possible undeveloped reserves and development plans, we include in the proved, probable and possible undeveloped category only reserves assigned to undeveloped locations that we have been informed will definitely be drilled. Pan American has informed us of their intent and ability to proceed with the development activities included in this report, and that they are not aware of any legal, regulatory or political obstacles that would significantly alter their plans .





Current costs were held constant throughout the life of the properties. Table A describes the development costs used in this report in more detail.





Standards of Independence and Professional Qualification





Ryder Scott is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world for over seventy years. Ryder Scott is employee owned and maintains offices in Houston, Texas; Denver, Colorado; and Calgary, Alberta, Canada. We have over eighty engineers and geoscientists on our permanent staff. By virtue of the size of our firm and the large number of clients for which we provide services, no single client or job represents a material portion of our annual revenue. We do not serve as officers or directors of any privately-owned or publicly-traded oil and gas company and are separate and independent from the operating and investment decision-making process of our clients. This allows us to bring the highest level of independence and objectivity to each engagement for our services.










RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS
 
 Pan American Energy Chile - Coiron Block
 February 17, 2012
 Page 7






Ryder Scott actively participates in industry related professional societies and organizes an annual public forum focused on the subject of reserves evaluations and SEC regulations. Many of our staff have authored or co-authored technical papers on the subject of reserves related topics.We encourage our staff to maintain and enhance their professional skills by actively participating in ongoing continuing education.





Prior to becoming an officer of the Company, Ryder Scott requires that staff engineers and geoscientists  have received professional accreditation in the form of a registered or certified professional engineer's license or a registered or certified professional geoscientist's license, or the equivalent thereof, from an appropriate governmental authority or a recognized self-regulating professional organization.




We are independent petroleum engineers with respect to Pan American.Neither we nor any of our employees have any interest in the subject properties,and neither the employment to do this work nor the compensation is contingent on our estimates of reserves for the properties which were reviewed.





The results of this study, presented herein, are based on technical analysis conducted by teams of geoscientists and engineers from Ryder Scott.The professional qualifications of the undersigned, the technical person primarily responsible for overseeing the evaluation of the reserves information discussed in this report, are included as an attachment to this letter.





Terms of Usage





This report was prepared for the exclusive use and sole benefit of Pan American Energy Chile and may not be put to other use without our prior written consent for such use.We have provided Pan American with a digital version of the original signed copy of this report.In the event there are any differences between the digital version and the original signed report letter,the original signed report letter shall control and supersede the digital version.





The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.







RYDER SCOTT COMPANY, L.P.

TBPE Firm Registration No.F-1580



/s/ GualeRamirez

GualeRamirez,P.E.

TBPE License No. 48318

Managing Senior Vice President – International












GR (JEH)/pl





RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS










Professional Qualifications of Primary Technical Person





The conclusions presented in this report are the result of technical analysis conducted by teams of geoscientists and engineers from Ryder Scott Company, L.P. Guadalupe Ramirez was the primary technical person responsible for overseeing the estimate of the reserves, future production and income.




Mr. Ramirez, an employee of Ryder Scott Company L.P. (Ryder Scott) since 1981, is a Managing Senior Vice President and also serves as a member of the Board of Directors. He is responsible for coordinating and supervising staff and consulting engineers of the company in ongoing reservoir evaluation studies worldwide. Before joining Ryder Scott, Mr. Ramirez served in a number of engineering positions with Sun Oil Company and Natomas North America. For more information regarding Mr. Ramirez's geographic and job specific experience, please refer to the Ryder Scott Company website at www.ryderscott.com/Experience/Employees.




Ramirez earned a Bachelor of Science Degree in Mechanical Engineering with honors from Texas A&M University in 1976 and is a licensed Professional Engineer in the State of Texas. He is also a member of the Society of Petroleum Engineers.




In addition to gaining experience and competency through prior work experience, the Texas Board of Professional Engineers requires a minimum of fifteen hours of continuing education annually, including at least one hour in the area of professional ethics, which Mr. Ramirez fulfills. As part of his 2011 continuing education hours, Mr. Ramirez attended an internally received 18 hours of formalized training as well as a day long public forum, the, 2011 RSC Reserves Conference relating to the definitions and disclosure guidelines contained in the United States Securities and Exchange Commission Title 17, Code of Federal Regulations, Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register. Mr. Ramirez has also presented courses on the new SEC Reserves definitions on various occasions during the year 2009 and 2011 as well as 16 hours of formalized external training during 2011 covering such topics as the SPE/WPC/AAPG/SPEE Petroleum Resources Management System, reservoir engineering, geoscience and petroleum economics evaluation methods, procedures and software, unconventional resources and ethics for consultants.




Based on his educational background, professional training and more than 34 years of practical experience in the estimation and evaluation of petroleum reserves, Mr. Ramirez has attained the professional qualifications as a Reserves Estimator and Reserves Auditor set forth in Article Ill of the "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information" promulgated by the Society of Petroleum Engineers as of February 19, 2007.























































RYDER SCOTT COMPANY PETROLEUM CONSULTANTS










PAN AMERICAN ENERGY LLC
     Estimated
  Future Reserves and Income
 
 Attributable to Certain
 
 Interests
    SEC Parameters
     As of
  December 31, 2011
     /s/ Hugo Ovalle

/s/ GualeRamírezHugo Ovalle

Petroleum Engineer

GualeRamírez,P.E.

TBPELicenseNo.48318

Managing Senior Vice President
 RYDER SCOTT COMPANY, L.P.
 TBPEFirmRegistrationNo.F-1580
 
 
 RYDERSCOTTCOMPANYPETROLEUMCONSULTANTS
 
 
 PANAMERICANENERGYLLC
 ESTIMATED FUTURERESERVESANDINCOME
 ATTRIBUTABLETOCERTAININTERESTS
 ASOFDECEMBER31,2011
 TABLEOFCONTENTS
 TABLE NO.
 DISCUSSION
 DISCUSSIONLETTER
 PROFESSIONALQUALIFICATIONSOFPRIMARYTECHNICALPERSON
 
 PETROLEUMRESERVESDEFINITIONS
 
 PROPERTYRANKINGBYPROVEDDISCOUNTEDFUTURENETINCOME
ASUMMARYOFGROSSANDNETRESERVEANDINCOMEDATA
BGRAND SUMMARY- TOTAL PROVED
1- PROVED PRODUCING
2- PROVED SHUT-IN
3- PROVED UNDEVELOPED
4- PROVED DEPLETED
5- TOTAL PROBABLE
6- PROBABLE PRODUCING
7-PROBABLE SHUT-IN
8- PROBABLE BEHIND PIPE
9- PROBABLE UNDEVELOPED
10- TOTAL POSSIBLE
11- POSSIBLE PRODUCING
12- POSSIBLE SHUT-IN
13- POSSIBLE BEHIND PIPE
14- POSSIBLE UNDEVELOPED
15AUSTRAL BASIN SUMMARY- TOTAL PROVED
16- PROVED PRODUCING
17- PROVED UNDEVELOPED
18- TOTAL PROBABLE
19- PROBABLE PRODUCING
20- PROBABLE UNDEVELOPED
21- TOTAL POSSIBLE
22- POSSIBLE PRODUCING
23- POSSIBLE UNDEVELOPED
24CUENCA MARINA AUSTRAL AREA SUMMARY- TOTAL PROVED
25- PROVED PRODUCING
26- PROVED UNDEVELOPED
27- TOTAL PROBABLE
28- PROBABLE PRODUCING
29- PROBABLE UNDEVELOPED
30- TOTAL POSSIBLE
31
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 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 - POSSIBLE PRODUCING
32- POSSIBLE UNDEVELOPED
33ARIESFIELD SUMMARY- PROVED PRODUCING
34- PROBABLE PRODUCING
35- POSSIBLE PRODUCING
36CANADONALFA COMPLEXSUMMARY- PROVED PRODUCING
37- PROBABLE PRODUCING
38ALFA SUR FIELDSUMMARY- PROVED PRODUCING
39- PROBABLE PRODUCING
40CANADONALFAFIELD SUMMARY- PROVED PRODUCING
41- PROBABLE PRODUCING
42CULLEN NORTEFIELD SUMMARY- PROVED PRODUCING
43- PROBABLE PRODUCING
44FENIXCARINAFIELDSUMMARY- TOTAL PROVED
45- PROVED PRODUCING
46- PROVED UNDEVELOPED
47- TOTAL PROBABLE
48- PROBABLE PRODUCING
49- PROBABLE UNDEVELOPED
50- POSSIBLE UNDEVELOPED
51RIO CULLEN COMPLEX SUMMARY- PROVED PRODUCING
52- PROBABLE PRODUCING
53- POSSIBLE UNDEVELOPED
54ARA SUR FIELD SUMMARY- PROVED PRODUCING
55- PROBABLE PRODUCING
56ARGO FIELD SUMMARY- PROVED PRODUCING
57- PROBABLE PRODUCING
58HIDRAFIELD SUMMARY RyderScottCompanyPETROLEUMCONSULTANTS
 
 TBPEFIRMLICENSENo.F-1580
 
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 ESTIMATED FUTURERESERVESANDINCOME
 ATTRIBUTABLETOCERTAININTERESTS
 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 -PROVED PRODUCING
59-PROBABLE PRODUCING
60HIDRA SUR FIELD SUMMARY- PROVED PRODUCING
61-PROBABLE PRODUCING
62KAUS (CULLEN SUR) FIELD SUMMARY-PROVED PRODUCING
63- PROBABLE PRODUCING
64RIO CULLENFIELDSUMMARY- PROVED PRODUCING
65-PROBABLE PRODUCING
66SPICA FIELD SUMMARY-POSSIBLE UNDEVELOPED
67VEGA PLEYADE FIELD SUMMARY-PROVED UNDEVELOPED
68- PROBABLE UNDEVELOPED
69AREA COST ALLOCATION SUMMARY-TOTAL PROVED
70- PROVED PRODUCING
71-PROVED UNDEVELOPED
72- TOTAL PROBABLE
73-PROBABLE PRODUCING
74-PROBABLE UNDEVELOPED
75- TOTAL POSSIBLE
76-POSSIBLE PRODUCING
77-POSSIBLE UNDEVELOPED
78GOLFO SAN JORGE BASIN SUMMARY- TOTAL PROVED
79-PROVED PRODUCING
80- PROVED UNDEVELOPED
81-PROVED DEPLETED
82-PROBABLE UNDEVELOPED
83-POSSIBLE UNDEVELOPED
84ESTANCIA LA ESCONDIDA AREA SUMMARY- TOTAL PROVED
85- PROVED PRODUCING
86-PROVED UNDEVELOPED
87- PROVED DEPLETED
88-PROBABLE UNDEVELOPED
89 RyderScottCompanyPETROLEUMCONSULTANTS
 
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 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 - POSSIBLE UNDEVELOPED
90ESTANCIA LAESCONDIDA FIELD SUMMARY- TOTAL PROVED
91- PROVED PRODUCING
92- PROVED UNDEVELOPED
93- PROVED DEPLETED
94- PROBABLE UNDEVELOPED
95- POSSIBLE UNDEVELOPED
96AREA COST ALLOCATION SUMMARY- TOTAL PROVED
97- PROVED PRODUCING
98- PROBABLE UNDEVELOPED
99- POSSIBLE UNDEVELOPED
100- PROVED UNDEVELOPED
101NEUQUEN BASIN SUMMARY- TOTAL PROVED
102- PROVED PRODUCING
103- PROVED SHUT-IN
104- PROVED UNDEVELOPED
105- PROVED DEPLETED
106- TOTAL PROBABLE
107- PROBABLE PRODUCING
108- PROBABLE SHUT-IN
109- PROBABLE BEHIND PIPE
110- PROBABLE UNDEVELOPED
111- TOTAL POSSIBLE
112- POSSIBLE PRODUCING
113- POSSIBLE SHUT-IN
114- POSSIBLE BEHIND PIPE
115- POSSIBLE UNDEVELOPED
116AGUADA PICHANA AREA SUMMARY- TOTAL PROVED
117- PROVED PRODUCING
118- PROVED SHUT-IN
119- PROVED UNDEVELOPED
120- TOTAL PROBABLE
121- PROBABLE PRODUCING
122- PROBABLE SHUT-IN
123- PROBABLE UNDEVELOPED
124- TOTAL POSSIBLE
125- POSSIBLE SHUT-IN
126- POSSIBLE UNDEVELOPED
127 RyderScottCompanyPETROLEUMCONSULTANTS
 
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 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 AGUADAPICHANAFIELD SUMMARY- PROBABLE UNDEVELOPED
128- POSSIBLE UNDEVELOPED
129AGUADA PICHANA CANYON DELA ZORRA-TOTAL PROVED
130-PROVEDPRODUCING
131-PROVEDSHUT-IN
132AGUADA PICHANALASCARCELES CENTRO-PROVEDSHUT-IN
133-TOTALPROBABLE
134-PROBABLESHUT-IN
135-PROBABLE UNDEVELOPED
136AGUADAPICHANALAS CARCELES NORTE-TOTALPROVED
137- PROVEDSHUT-IN
138-PROVED UNDEVELOPED
139-TOTAL PROBABLE
140-PROBABLESHUT-IN
141-PROBABLEUNDEVELOPED
142-POSSIBLESHUT-IN
143AGUADA PICHANA LAS CARCELES OESTE-POSSIBLE UNDEVELOPED
144AGUADA PICHANA LAS CARCELES SUR- PROVEDSHUT-IN
145-PROBABLEUNDEVELOPED
146AGUADA PICHANA MAIN FIELD SUMMARY- TOTAL PROVED
147-PROVEDPRODUCING
148-PROVEDSHUT-IN
149- PROVED UNDEVELOPED
150 AGUADA PICHANA MAIN NORTH FIELD-TOTAL PROVED
151-PROVEDPRODUCING
152-PROVEDSHUT-IN
153AGUADA PICHANA MAIN WEST FIELD-TOTAL PROVED
154-PROVED PRODUCING
155- PROVED SHUT-IN
156- PROVED UNDEVELOPED
157
 RyderScottCompanyPETROLEUMCONSULTANTS
 
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 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 - TOTAL PROBABLE
158- PROBABLE PRODUCING
159- PROBABLE UNDEVELOPED
160- POSSIBLE UNDEVELOPED
161AGUADA PICHANA PH-1FIELD SUMMARY- TOTAL PROVED
162- PROVED PRODUCING
163- PROVED SHUT-IN
164- PROVED UNDEVELOPED
165- PROBABLE UNDEVELOPED
166AGUADA PICHANA PH-2 FIELD SUMMARY- TOTAL PROVED
167- PROVED PRODUCING
168- PROVED SHUT-IN
169- PROVED UNDEVELOPED
170AGUADA PICHANA PH-3 FIELD SUMMARY- PROBABLE UNDEVELOPED
171AGUADA PICHANA TIGHT-1FIELDSUMMARY- TOTAL PROVED
172- PROVED PRODUCING
173- PROVED SHUT-IN
174- PROVED UNDEVELOPED
175- TOTAL PROBABLE
176- PROBABLE PRODUCING
177- PROBABLE SHUT-IN
178- PROBABLE UNDEVELOPED
179AGUADA PICHANA TIGHT-2 FIELD SUMMARY- PROVED SHUT-IN
180AREA COSTALLOCATION SUMMARY- TOTAL PROVED
181- PROVED PRODUCING
182- PROVED SHUT-IN
183- PROVED UNDEVELOPED
184- TOTAL PROBABLE
185- PROBABLE PRODUCING
186- PROBABLE SHUT-IN
187- PROBABLE UNDEVELOPED
188- TOTAL POSSIBLE
189- POSSIBLE SHUT-IN
190- POSSIBLE UNDEVELOPED
191 RyderScottCompanyPETROLEUMCONSULTANTS
 
 TBPEFIRMLICENSENo.F-1580
 
 PANAMERICANENERGYLLCESTIMATED
 FUTURERESERVESANDINCOME
 ATTRIBUTABLETOCERTAININTERESTS
 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 LINDERO ATRAVESADO AREA SUMMARY- TOTAL PROVED
192- PROVED PRODUCING
193- PROVED SHUT-IN
194- PROVED UNDEVELOPED
195- PROVED DEPLETED
196- TOTAL PROBABLE
197- PROBABLE BEHIND PIPE
198- PROBABLE UNDEVELOPED
199- TOTAL POSSIBLE
200- POSSIBLE BEHIND PIPE
201- POSSIBLE UNDEVELOPED
202LINDERO ATRAVESADO OCCIDENTAL FIELD- TOTAL PROVED
203- PROVED PRODUCING
204- PROVED SHUT-IN
205- PROVED DEPLETED
206- TOTAL PROBABLE
207- PROBABLE BEHIND PIPE
208- PROBABLE UNDEVELOPED
209- TOTAL POSSIBLE
210- POSSIBLE BEHIND PIPE
211- POSSIBLE UNDEVELOPED
212LINDERO ATRAVESADO ORIENTALFIELD- TOTAL PROVED
213- PROVED PRODUCING
214- PROVED UNDEVELOPED
215- PROVED DEPLETED
216- PROBABLE UNDEVELOPED
217- POSSIBLE UNDEVELOPED
218AREA COST ALLOCATION SUMMARY- TOTAL PROVED
219- PROVED PRODUCING
220- PROVED SHUT-IN
221- PROVED UNDEVELOPED
222- PROBABLE UNDEVELOPED
223- TOTAL POSSIBLE
224- POSSIBLE BEHIND PIPE
225- POSSIBLE UNDEVELOPED
226SAN ROQUE AREA SUMMARY- TOTAL PROVED
227- PROVED PRODUCING
228 RyderScottCompanyPETROLEUMCONSULTANTS
 
 TBPEFIRMLICENSENo.F-1580
 
 PANAMERICANENERGYLLC
 ESTIMATED FUTURERESERVESANDINCOME
 ATTRIBUTABLETOCERTAININTERESTS
 ASOFDECEMBER31,2011
 TABLEOFCONTENTS(CONT'D)
 TABLE NO.
 - PROVED SHUT-IN
229- PROBABLE PRODUCING
230- POSSIBLE PRODUCING
231- POSSIBLE UNDEVELOPED
232AGUADA SAN ROQUE FIELD SUMMARY- TOTAL PROVED
233- PROVED PRODUCING
234- PROVED SHUT-IN
235- PROBABLE PRODUCING
236- POSSIBLE UNDEVELOPED
237LOMA LAS YEGUAS FIELD SUMMARY- PROVED PRODUCING
238- PROBABLE PRODUCING
239- POSSIBLE PRODUCING
240AREA COST ALLOCATION SUMMARY- TOTAL PROVED
241- PROVED PRODUCING
242- PROVED SHUT-IN
243- PROBABLE PRODUCING
244- TOTAL POSSIBLE
245- POSSIBLE PRODUCING
246- POSSIBLE UNDEVELOPED
247
 RyderScottCompanyPETROLEUMCONSULTANTS
 
 TBPEFIRMLICENSENo.F-1580
 
 TBPE REGISTERED ENGINEERING FIRM F-1580

1100LOUISIANASUITE3800
HOUSTON.TEXAS77002-5235
FAX (713) 651-0849

TELEPHONE(713)651-9191February 20, 2012
 Pan American Energy LLC
 Mr.CarlosBulgheroni,CEOand
 Mr.AlejandroP.Bulgheroni,Chairman
 LeandroN.Alem1180
 1001 Buenos Aires, Argentina
 
 Gentlemen:
 
 Atyourrequest,RyderScottCompany(RyderScott)haspreparedanestimateoftheproved,probableandpossiblereserves,futureproduction,andincomeattributabletocertaininterestsofPanAmericanEnergyLLC(PanAmerican)asofDecember31,2011.ThesubjectpropertiesarelocatedintheprovincesofChubut,NeuquenandTierradel Fuego(onshoreandoffshore)Argentina.TheprovedreserveswereestimatedbasedonthedefinitionsanddisclosureguidelinescontainedintheUnitedStatesSecuritiesandExchangeCommissionTitle17,CodeofFederalRegulations,ModernizationofOilandGasReporting,FinalRulereleasedJanuary14,2009intheFederalRegister(SECregulations).Theprobableandpossiblereserveswereestimatedbasedonthedefinitionsanddisclosureguidelinescontainedin theSocietyofPetroleumEngineers(SPE),WorldPetroleumCouncil(WPC),AmericanAssociationofPetroleumGeologists(AAPG),andSocietyofPetroleumEvaluationEngineers(SPEE)PetroleumResourcesManagementSystem(SPE-PRMS).TheincomedatawereestimatedusingtheSecuritiesandExchangeCommission(SEC)requirementsforfuture priceandcostparameters.Theresultsofourthirdpartystudy,completedonFebruary15,2012,arepresented herein.
 
 ThepropertiesevaluatedbyRyderScottaccountforaportionofPanAmerican'stotalnetproved,probableandpossiblereservesasofDecember31,2012.ThethirdpartyestimateconductedbyRyderScottaddresses14percentofthetotalproved,14.1percentofthetotalprobableand19.0percentof thetotal possiblenet hydrocarbonreservesofPanAmerican,onabarrelequivalentbasis.
 
 Theestimatedreservesandfutureincomeamountspresentedinthisreport,asofDecember 31,2011,arerelatedtohydrocarbonprices.ThehydrocarbonpricesusedinthepreparationofthisreportarebasedonSECparameters usingtheaveragepricesduringthe12-monthperiodpriortotheendingdateoftheperiodcoveredinthisreport,determinedasunweightedarithmeticaveragesofthepricesineffectonthefirst-day-of-the-monthforeachmonthwithinsuchperiod,unlesspricesweredefinedbycontractualarrangementsasrequiredbytheSECregulations.Actualfuture pricesmayvary significantlyfromthe pricesrequiredbySEC regulations;therefore,volumesofreservesactuallyrecoveredandtheamounts ofincomeactuallyreceivedmaydiffersignificantlyfromtheestimatedquantitiespresentedinthis report.Theresultsof thisstudyaresummarizedonthefollowingpages.
 
 SUITE 600, 1015 4TH STREET, S.W.

621 17TH STREET, SUITE 1550
CALGARY, ALBERTA T2R U4

DENVER, COLORADO 80293-1501
TEL (403) 262-2799

TEL (303) 623-9147
FAX (403) 262-2790

FAX (303) 623-4258
 
 Pan American Energy LLC
 February20,2012
 Page 2
 
 PROVEDRESERVES- SECDEFINITIONS
 EstimatedNetReservesandIncomeData
 SECPriceandCostParameters
 Certain Interests of
 Pan American Energy, LLC
 AsofDecember31,2011
 ProvedDevelopedProducing


Non-Producing


Undeveloped


Total

ProvedNet Remaining ReservesOil/Condensate - Barrels


9,497,209



68,163



4,795,180



14,360,552Plant Products - Barrels


5,819,216



0



5,701,504



11,520,720Gas- MMCF


503,438



13,836



423,562



940,836Income Data-($M)Future Gross Revenue


$1,865,201



$78,954



$1,975,615



$3,919,770Deductions


912,522



28,370



867,528



1,808,420Future Net Income (FNI)


$952,679



$50,584



$1,108,087



$2,111,350Discounted FNI @ 10%


$722,307



$40,479



$446,195



$1,208,981
 PROBABLE RESERVES - SPE-PRMS DEFINITIONS

Estimated Net Reserves and Income Data

SEC Price and Cost Parameters

Certain Interests of

Pan American Energy, LLC

As of December 31,2011ProducingDevelopedNet Remaining Reserves

Probable


Non-Producing


Undeveloped


Total

ProbableOil/Condensate - Barrels


1,989,459



32,703



2,808,084



4,830,246Plant Products-Barrels


620,797



0



1,712,004



2,332,801Gas- MMCF


77,244



4,473



214,761



296,478Income Data-($M)Future Gross Revenue


$298,617



$32,171



$798,724



$1,129,512Deductions


62,206



6,221



355,364



423 791Future Net Income (FNI)


$236,411



$25,950



$443,360



$705,721Discounted FNI@ 10%


$80,196



$20,714



$154,928



$255,838
 
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 Pan American Energy LLC
 February20,2012
 Page 3
 
 POSSIBLE RESERVES - SPE-PRMS DEFINITIONS
 EstimatedNetReservesandIncomeData
 SEC Price and Cost Parameters
 Certain Interests of
 Pan American Energy, LLC
 AsofDecember31,2011
 
 ProbableDevelopedProducing


Non-Producing


Undeveloped


Total

ProbableNet Remaining ReservesOil/Condensate - Barrels


301,758



35,886



3,709,068



4,046,712Plant Products - Barrels


0



0



1,533,298



1,533,298Gas-MMCF


27,144



2,855



226,228



256,227Income Data- ($M)Future Gross Revenue


$80,731



$20,432



$996,746



$1,097,909Deductions


23,763



4,533



446 547



474 843Future Net Income (FNI)


$56,968



$15,899



$550,199



$623,066Discounted FNI@10%


$29,742



$12,491



$228,669



$270,902
 
 Liquidhydrocarbonsareexpressedinstandard42gallonbarrels.Allgasvolumesarereportedonan"assold"basisexpressedinmillionsofcubicfeet(MMCF)attheofficialtemperatureandpressurebasesoftheareasinwhichthegasreservesarelocated.Inthisreport, therevenues,deductions,andincomeareexpressedasthousandsofU.S.dollars($M).
 
 PanAmericanhasindicatedthataccordingtotheirconcessionagreementsinArgentina,therearenodeductionsmadeforstatutoryprovincialroyalties,butinsteadthesearetreatedascosts.Asaresult,thehydrocarbonreservesincludedinthisreportarereported asworkinginterestvolumes.
 
 Theestimatesofthereserves,futureproduction,andincomeattributabletopropertiesinthisreportwerepreparedusingthe economicsoftwarepackageAriesTMSystemPetroleumEconomicEvaluationSoftware,acopyrightedprogramofHalliburton.RyderScotthasfoundthisprogramtobegenerallyacceptable,butnotes thatcertainsummariesandcalculationsmayvaryduetoroundingandmaynotexactlymatchthesumofthepropertiesbeingsummarized.Furthermore,onelineeconomicsummariesmayvaryslightlyfromthemoredetailedcashflowprojectionsofthesameproperties,alsoduetorounding.Theroundingdifferencesarenotmaterial.
 
 Thefuturegrossrevenueisnotsubjecttodirectproductiontaxes.Thedeductionsincorporatethenormaldirectcostsofoperatingthe wells,recompletioncosts,developmentcosts,royaltypaymentsandcertainabandonmentcostsnetofsalvage.Thefuture netincomeisbeforethedeductionofArgentinefederalincometaxesandgeneraladministrativeoverhead,andhasnotbeenadjustedforoutstandingloansthatmayexistnordoesitincludeanyadjustmentforcashonhandorundistributed income.
 
 Gasreservesaccountforapproximately64percentofthetotalfuturegrossrevenuefromprovedreserves,andliquidhydrocarbonreservesaccountfortheremaining36percentoftotalfuturegrossrevenuefromprovedreserves.Gasreservesaccountforapproximately63percentofthetotalfuturegrossrevenuefromprobablereserves,andliquidhydrocarbonreservesaccountfortheremaining37percentoftotalfuturegrossrevenuefromprobablereserves.Gasreservesaccountfor
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 Pan American Energy LLC
 February20,2012
 Page 4
 
 approximately70percentofthetotalfuturegrossrevenuefrompossiblereserves,andliquidhydrocarbonreservesaccountfortheremaining30percentoftotalfuturegrossrevenuefrompossible reserves.
 Thediscountedfuturenetincomeshownabovewascalculatedusingadiscountrateof10percentperannumcompoundedmonthly.Futurenetincomewasdiscountedatfourotherdiscountrateswhichwerealsocompoundedmonthly.Theseresultsareshowninsummaryformasfollows.
 
 Discounted Future Net Income ($M)

As of December 31, 2011Discount Rate

Percent

Total

Proved

Total

Probable

Total
Possible9

$1,268,108

$278,329

$288,48915

$972,848

$176,184

$206,24420

$806,989

$129,913

$164,89225

$685,881

$100,999

$135,918
 
 The results shown above are presented for your information and should not be construed as our estimate of fair market value.
 
 Reserves Included in This Report
 
 Theprovedreservesincludedhereinconformtothedefinition assetforthintheSecuritiesandExchangeCommission'sRegulationsPart210.4-10(a).Theprobablereservesandpossiblereservesincludedhereinconformtodefinitionsofprobableandpossiblereservessponsoredandapprovedby theSocietyofPetroleumEngineers(SPE),theWorldPetroleumCouncil(WPC),theAmericanAssociationofPetroleumGeologists(AAPG)andtheSociety ofPetroleumEvaluationEngineers(SPEE)assetforthinthe2007SPE/WPC/AAPG/SPEEPetroleum ResourcesManagementSystem(SPE-PRMS).AnabridgedversionoftheSECprovedreservesdefinitionsfrom210.4-10(a)andtheSPE/WPC/AAPG/SPEEprobableandpossiblereservesfromtheSPE-PRMS entitled"PetroleumReservesDefinitions"isincludedas anattachmenttothisreport.
 
 Thevariousreservestatuscategoriesaredefinedintheattachment tothisreportentitled"ReservesStatusDefinitionsandGuidelines."The developedprovedand probablenon-producingreservesincludedhereinconsistoftheshut-incategory.Thedevelopedpossiblenon-producingreservesincludedhereinconsistoftheshut-in andbehindpipecategories.
 
 No attempt was made to quantify or otherwise account for any accumulated gas production imbalances that may exist. The gas volumes included herein do not attribute gas consumed in operations as reserves.
 
 Whileitmayreasonablybe anticipatedthatthefuturepricesreceivedforthesaleofproductionandtheoperatingcostsandothercostsrelatingtosuchproductionmayalsoincreaseordecreasefromexistinglevels,suchchangeswereomittedfromconsiderationinmakingthisevaluation.
 
 Provedoilandgasreservesare"thosequantitiesofoilandgas,which,byanalysisofgeoscienceandengineeringdata,canbeestimatedwithreasonablecertainty tobeeconomicallyproduciblefromagivendateforward."Probablereservesarethoseadditionalreservesthatareless
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 Pan American Energy LLC
 February20,2012
 Page 5
 certaintoberecoveredthanprovedreservesbutwhich,togetherwithprovedreserves,areaslikelyasnottoberecovered.Possiblereservesarethoseadditional reserveswhicharelesscertaintoberecoveredthanprobablereservesandthustheprobabilityofachievingorexceedingtheprovedplusprobablepluspossiblereservesislow.Thereservesincludedhereinwereestimatedusingdeterministicmethodsandpresentedasincrementalquantities.Underthedeterministicincrementalapproach,discretequantitiesofreservesareestimatedandassignedseparatelyasproved,probableorpossiblebasedontheirindividuallevelofuncertainty.
 
 Thereservesandincomequantitiesattributabletothedifferentreserveclassificationsthatareincludedhereinhavenotbeenadjustedtoreflectthesevaryingdegreesofriskassociatedwiththemandthusarenotcomparable.Moreover,estimatesofreservesmay increaseordecreaseasaresultoffutureoperations,effectsofregulationbygovernmentalagenciesorgeopoliticalrisks.Asaresult,theestimatesofoilandgas reserveshaveanintrinsicuncertainty.Thereservesincludedinthisreportarethereforeestimatesonlyandshouldnotbeconstruedasbeingexactquantities.Theymayormaynotbeactuallyrecovered,andifrecovered,therevenuestherefromandtheactualcostsrelatedtheretocouldbemoreorless thantheestimated amounts.
 
 Thereservesreportedhereinarelimitedtotheperiodpriorto expirationofcurrentcontractsprovidingthelegalrighttoproduceorarevenueinterestinsuchproductionunlessevidenceindicatesthatcontractrenewal isreasonablycertain. Furthermore,propertiesinthecountryofArgentinamaybesubjectedtosignificantlyvaryingcontractualfiscaltermsthataffectthenetrevenuetoPanAmericanfortheproductionofthesevolumes.Thepricesandeconomicreturnreceivedforthesenetvolumescanvarysignificantlybasedonthe termsofthesecontracts.RyderScotthasnotconductedanexhaustiveauditorverificationofsuchcontractual information.OuracceptanceofPanAmerican'srepresentationsregardingsuchcontractualinformationshouldnotbeconstruedasalegalopiniononthismatter.
 
 RyderScottdidnotevaluatecountryandgeopoliticalrisksinthecountryofArgentina,wherethesubjectproperties arelocated. PanAmerican'soperationsmaybesubjecttovariouslevelsofgovernmentalcontrolsandregulations.These controlsand regulationsmayincludemattersrelatingtolandtenure,drilling,productionpractices, environmentalprotection, marketingandpricingpolicies,royalties,varioustaxesandleviesincludingincometax,andforeigntradeandinvestmentandaresubjecttochangefromtimetotime.Suchchangesingovernmentalregulationsandpoliciesmaycausevolumesofreservesactuallyrecoveredandamountsof incomeactuallyreceivedtodiffersignificantlyfromtheestimated quantities.
 
 TheestimatesofreservespresentedhereinwerebaseduponadetailedstudyofthepropertiesinwhichPanAmericanownsaninterest; however,wehavenotmadeanyfieldexaminationoftheproperties.Noconsiderationwasgiveninthisreporttopotentialenvironmentalliabilitiesthatmayexistnorwereanycostsincludedforpotentialliabilitytorestoreandcleanupdamages,ifany,causedby pastoperatingpractices.
  Estimates of Reserves
 
 Thereservesforthepropertiesincludedhereinwereestimatedbyperformancemethods,theanalogymethodorthevolumetricmethod.Ingeneral,reservesattributabletoproducingwellsand/orreservoirswereestimatedbyperformance methodssuchasdeclinecurveanalysisandmaterialbalance,whichutilizedextrapolationsofhistorical productionandpressuredataavailablethroughSeptember2011inthosecaseswheresuchdatawereconsideredtobedefinitive.Incertaincases,producingreserveswereestimatedbythevolumetricmethodwheretherewereinadequatehistorical
  RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 
  Pan American Energy LLC
 February20,2012
 Page 6
 
 performancedatatoestablishadefinitivetrendandwheretheuseofproductionperformancedataasabasisforthereserveestimateswasconsideredtobeinappropriate.Reservesattributabletoproved,probableandpossiblenon-producingandundevelopedreservesincludedhereinwereestimatedbytheanalogymethodorthevolumetricmethodwhichutilizedallpertinentwellandseismicdataavailablethroughDecember2011.
 
 MajorfieldswhichwereevaluatedbasedprimarilyonperformanceoranalogymethodsincludetheCañadonAlfaandKausfieldsintheAustralBasin,andAguadaPichana,AguadaSanRoque,LomaLasYeguas,andLinderoAtravesadofieldsintheNeuquenBasin.Majorfields, whichwereevaluatedbythevolumetricmethod,includetheAries,FenixCarinaandVegaPleyadefieldsintheAustralBasin.Provedreservesfortheremainingfields,wereevaluatedusingperformancemethods.MaterialbalancemethodswerealsousedtosupportourresultsforAguadaSanRoque,AriesandLomaLasYeguasfields.
 
 Toestimateeconomicallyrecoverableoilandgasreservesandrelatedfuturenetcashflows,weconsidermanyfactorsandassumptionsincluding,butnotlimitedto,theuseofreservoirparametersderivedfromgeological,geophysicalandengineeringdatawhichcannotbemeasureddirectly,economiccriteriabasedoncurrentcostsandSECpricingrequirements,andforecastsoffutureproductionrates.UndertheSECregulations210.4-10(a)(22)(v)and (26),provedreservesmustbedemonstratedtobeeconomicallyproduciblebasedonexistingeconomicconditionsincludingthepricesandcostsatwhicheconomicproducibilityfromareservoiristobedeterminedasoftheeffectivedateofthereport.Wehaveappliedthesamecriteriaforeconomicproducibilitytotheprobableandpossiblereservesincludedinthisreport.PanAmericanhasinformedusthattheyhavefurnishedusalloftheaccounts,records,geologicalandengineeringdata,andreportsand otherdatarequiredforthisinvestigation.Inpreparingourforecastoffuture productionandincome,wehavereliedupondatafurnishedbyPanAmericanwith respecttopropertyinterestsowned,productionandwell testsfromexaminedwells,normaldirectcostsofoperatingthewellsorproperties,othercostssuchastransportationand/orprocessingfees,royaltypayments,recompletion anddevelopmentcosts,abandonmentcostsaftersalvage,productpricesbasedontheSECregulations,geologicalstructuralandisochoremaps,welllogs,coreanalyses,andpressuremeasurements.RyderScott reviewedsuchfactualdataforitsreasonableness;however,wehavenotconductedanindependentverificationofthedatasuppliedbyPanAmerican.
 
 TableApresents aone-linesummaryofprovedreservesandincomedataforeachofthesubjectpropertieswhicharerankedaccordingtotheirfuturenetincomediscountedat10percentperyear.TableBpresentsaone-linesummaryofgrossandnetreservesandincomedatafor eachofthesubjectproperties.Tables1through247presentourestimatedprojectionsofproductionandincomebyyearsbeginningJanuary1,2012,assummarizedforthetotalPanAmericanEnergyLLCandby basin,area,andfield.
  Future Production Rates
 
 Forwellscurrentlyonproduction,ourforecastsoffutureproduction ratesarebasedonhistoricalperformancedata.Ifnoproductiondeclinetrendhasbeenestablished,futureproductionrateswereheldconstant,oradjustedfortheeffectsofcurtailmentwhereappropriate,untiladeclineinabilitytoproducewasanticipated.Anestimatedrateofdeclinewasthenappliedtodepletionofthereserves.Ifadeclinetrendhasbeenestablished,thistrendwasusedasthebasisforestimatingfutureproduction rates.
  RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 
  Pan American Energy LLC
 February20,2012
 Page 7
 
 Testdataandotherrelatedinformationwereusedtoestimatetheanticipatedinitialproductionratesforthosewellsorlocationsthatarenotcurrentlyproducing.Forreservesnotyetonproduction,saleswereestimatedtocommenceatananticipateddatefurnishedbyPanAmerican.Wellsorlocationsthatarenotcurrentlyproducingmaystartproducingearlierorlaterthananticipatedinourestimatesduetounforeseenfactorscausingachangein the timingtoinitiateproduction.Suchfactorsmayincludedelaysduetoweather,theavailabilityofrigs,thesequenceofdrilling,completingand/orrecompletingwellsand/orconstraintssetbyregulatorybodies.
 
 Thefutureproductionratesfrom wellscurrentlyonproductionorwellsorlocationsthatarenotcurrentlyproducingmaybemoreorlessthanestimatedbecauseofchangesincluding,butnotlimitedto,reservoirperformance,operatingconditionsrelatedtosurfacefacilities,compressionandartificiallift,pipelinecapacityand/oroperatingconditions,producingmarketdemandand/orallowablesorotherconstraintsset byregulatorybodies.
 
 Hydrocarbon Prices
 
 PanAmerican provideduswithhydrocarbonprices.Pan AmericanhasassuredusthatthehydrocarbonpricesusedhereinarebasedonSECpriceparametersusingtheaveragepricesduringthe12-monthperiodpriortotheendingdateoftheperiodcoveredinthisreport,determinedastheunweightedarithmeticaveragesofthepricesineffectonthefirst-day-of-the-monthforeachmonthwithinsuchperiod,unlesspricesweredefinedbycontractual arrangements.CertaingaspricesforlowpermeabilityreservoirsoreconomicallymarginalprojectsweredeterminedbyPanAmericanbasedongovernmentalpriceallowancesforsuchgas.ThesepriceallowancesareapprovedbytheArgentinegovernmentonacasebycasebasis.Suchhighergaspriceallowancesunderaprogramdesignatedas"GasPlus"bytheArgentinegovernmentwerepaidinyear2011forcertainvolumesofgasdeliveredbyPanAmericanfromitsNeuquenbasedproperties.Agreatervolumeofgas,includinggasfromtheAustralbasin,hasbeengrantedGasPlusstatusandaccordingtoPanAmericanwillreceivesucha pricestartingin2012.Productpriceswhichwereactuallyusedforeachpropertyreflectadjustmentfor gravity,quality,localconditions,and/ordistancefrommarket.
 
 Theeffectsofderivativeinstrumentsdesignatedaspricehedgesofoilandgasquantitiesarenotreflectedin ourindividualpropertyevaluations.
 
 Costs
 
 Operatingcostsforthepropertiesandwellsinthisreportarebasedon theoperatingexpensereportsofPanAmericanandincludeonlythosecostsdirectly applicabletothepropertiesorwells.Theoperatingcostsincludeaportion ofgeneralandadministrativecostsallocateddirectlytothepropertiesandwells.Whenapplicableforoperatedproperties,theoperatingcostsincludeanappropriatelevelofcorporategeneral administrativeandoverheadcosts.Theoperatingcostsfornon-operatedpropertiesincludetheoverheadcoststhatareallocateddirectlytothepropertiesandwellsundertermsofoperatingagreements.Nodeductionwasmadeforloanrepayments,interestexpenses,orexplorationanddevelopmentprepaymentsthatwerenotchargeddirectlytothepropertiesorwells.
 
 DevelopmentcostswerefurnishedtousbyPanAmericanandarebasedonauthorizationsforexpenditurefortheproposedworkoractual costsforsimilarprojects.Theestimatednetcostofabandonmentaftersalvagewasincludedforpropertieswhereabandonmentcostsnetofsalvageweresignificant.TheestimatesofthenetabandonmentcostsfurnishedbyPanAmericanwereaccepted
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 
  Pan American Energy LLC
 February20,2012
 Page 8
 without independent verification. Ryder Scott has not performed a detailed study of the abandonment costs or the salvage value and makes no warranty for Pan American's estimates.
 
 Becauseofthedirectrelationshipbetweenvolumesofproved,probableandpossibleundevelopedreservesanddevelopmentplans,weincludein theproved,probableandpossibleundevelopedcategoryonlyreservesassignedtoundevelopedlocationsthatwehavebeeninformedwilldefinitelybedrilled.PanAmericanhasinformedusoftheirintentandabilitytoproceedwiththedevelopmentactivitiesincludedinthisreport,andthattheyarenotawareofanylegal,regulatoryor politicalobstaclesthatwouldsignificantly altertheirplans.TheplanofdevelopmentforthegasreservestobeproducedfromtheoffshorefieldsintheAustralBasincallsfortwofuturewellsintheCarinafieldwhicharescheduledtobedrilledbeyondfiveyearsfromtheasofdateofthisreport.Pan Americanhasprovideduswithaletterexplainingthereasonsforsuchadelay.Inouropinion,PanAmericanhasa coherentandreasonableexplanationfor deferring thedrillingofthesewellsasscheduledandwehaveassignedthereservescorrespondingtothisdevelopmentasproven.
 
 Current costs were held constant throughout the life of the properties.
 
 Standards of Independence and Professional Qualification
 
 RyderScottisanindependentpetroleumengineeringconsultingfirmthathasbeenprovidingpetroleumconsultingservicesthroughouttheworldforoverseventyyears.RyderScottisemployeeownedandmaintainsofficesinHouston,Texas;Denver,Colorado;andCalgary,Alberta,Canada.Wehaveovereightyengineersandgeoscientistsonourpermanentstaff.Byvirtueofthesizeofourfirmandthelargenumberofclientsforwhichweprovideservices,nosingleclientorjobrepresentsamaterialportionofourannualrevenue.Wedonotserveasofficersordirectorsofanyprivately-ownedorpublicly-tradedoil andgascompanyandare separateandindependentfromtheoperatingandinvestmentdecision-makingprocessofourclients.Thisallowsus tobringthehighestlevelofindependenceandobjectivitytoeachengagementforourservices.
 
 RyderScottactivelyparticipatesinindustryrelatedprofessionalsocietiesandorganizesanannualpublicforumfocusedonthesubjectofreservesevaluationsandSECregulations.Manyofourstaffhaveauthoredorco-authoredtechnical papersonthesubjectofreservesrelatedtopics.Weencourageourstafftomaintainandenhancetheirprofessionalskillsbyactivelyparticipatinginongoingcontinuingeducation.
 
 PriortobecominganofficeroftheCompany,RyderScottrequiresthatstaff engineersandgeoscientistshavereceivedprofessionalaccreditationintheformofaregisteredorcertifiedprofessionalengineer'slicenseoraregisteredorcertifiedprofessional geoscientist'slicense,ortheequivalentthereof,fromanappropriategovernmentalauthorityorarecognizedself-regulatingprofessionalorganization.
 
 WeareindependentpetroleumengineerswithrespecttoPanAmerican.Neitherwenoranyofouremployeeshaveanyinterestinthesubjectproperties,andneithertheemploymenttodothisworknorthecompensationiscontingentonourestimatesofreservesfor thepropertieswhichwere reviewed.
 
 Theresultsof thisstudy,presentedherein,arebasedontechnicalanalysisconductedbyteamsofgeoscientistsandengineersfromRyderScott.Theprofessionalqualificationsoftheundersigned,thetechnicalpersonprimarilyresponsiblefor overseeingtheevaluationof thereservesinformationdiscussedinthisreport,areincludedasanattachmenttothisletter.
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
 
  Pan American Energy LLC
 February20,2012
 Page 9
 
 
 Terms of Usage
 
 This report was prepared for the exclusive use and sole benefit of Pan American Energy LLC and may not be put to other use without our prior written consent for such use. We have provided Pan American with a digital version of the original signed copy of this report. In the event there are any differences between the digital version and the original signed report letter, the original signed report letter shall control and supersede the digital version.
 
 The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.
   HAO-GR (JEH)/pl
Very truly yours,



RYDER SCOTT COMPANY, L.P.

TBPE Firm Registration No. F-1580



/s/ Hugo A.Ovalle

Hugo A.Ovalle

Petroleum Engineer



/s/ Guale Ramírez

Guale Ramírez, P.E.

TBPE License No. 48318

Managing Senior Vice President- International
   RYDER SCOTT COMPANYPETROLEUMCONSULTANTS
  
   Professional Qualifications of Primary Technical Person
 
 The conclusions presented in this report are the result of technical analysis conducted by teams of geoscientists and engineers from Ryder Scott Company, L.P. Guadalupe Ramirez was the primary technical person responsible for overseeing the estimate of the reserves, future production and income.
 
 Mr.Ramirez,anemployee ofRyderScottCompanyL.P.(RyderScott)since1981,isaManagingSeniorVicePresidentandalsoservesasamemberoftheBoardofDirectors.Heisresponsibleforcoordinatingandsupervisingstaffandconsultingengineersof the companyinongoingreservoirevaluationstudiesworldwide.BeforejoiningRyderScott,Mr.RamirezservedinanumberofengineeringpositionswithSunOilCompanyandNatomasNorthAmerica.FormoreinformationregardingMr.Ramirez'sgeographicandjobspecificexperience,pleaserefertotheRyderScottCompanywebsiteatwww.ryderscott.com/Experience/Employees.
 
 Ramirez earned a Bachelor of Science Degree in Mechanical Engineering with honors from Texas A&M University in 1976 and is a licensed Professional Engineer in the State of Texas. He is also a member of the Society of Petroleum Engineers.
 
 Inadditiontogainingexperienceandcompetencythroughpriorworkexperience,theTexasBoardofProfessionalEngineersrequiresaminimumoffifteenhoursofcontinuingeducationannually,includingatleastonehourintheareaofprofessionalethics,whichMr.Ramirezfulfills.As partofhis2011continuingeducationhours,Mr.Ramirezattendedaninternallyreceived18hoursofformalizedtrainingaswellasadaylongpublicforum,the,2011RSCReservesConferencerelatingtothedefinitionsanddisclosure guidelinescontainedintheUnitedStatesSecuritiesandExchangeCommissionTitle17,CodeofFederalRegulations,ModernizationofOilandGasReporting,FinalRulereleasedJanuary14, 2009 in the Federal Register. Mr. Ramirez has also presented courses on the new SEC Reserves definitionsonvariousoccasionsduringtheyear2009 and2011aswellas16hoursofformalizedexternaltrainingduring2011coveringsuch topics astheSPE/WPC/AAPG/SPEEPetroleumResourcesManagementSystem,reservoirengineering,geoscienceandpetroleumeconomicsevaluationmethods,proceduresandsoftware,unconventionalresourcesandethicsforconsultants.
 
 Basedon hiseducationalbackground,professionaltrainingandmorethan34yearsofpracticalexperienceintheestimationandevaluationofpetroleumreserves,Mr. RamirezhasattainedtheprofessionalqualificationsasaReservesEstimatorandReservesAuditorsetforthinArticleIllofthe"StandardsPertainingtotheEstimatingandAuditingofOilandGasReservesInformation"promulgatedbytheSocietyofPetroleumEngineersasofFebruary19,2007.
 
 
 RYDER SCOTT COMPANYPETROLEUMCONSULTANTS