ADV.L Regulatory News (ADV)

1st November 2019

Andalas Energy and Power Plc

('Andalas' or the 'Company')

UKCS 31st Round Update

Andalas Energy and Power Plc, the AIM traded upstream oil and gas company (AIM: ADL), is pleased to provide the following update on the Colter Area in relation to the UK Oil and Gas Authority (OGA) 31st Licencing Round.

In the 31st Licencing Round Andalas was provisionally awarded an 8% interest in Blocks 98/11b and 98/12 in the English Channel as part of a joint venture group operated by Corallian Energy Limited. At the time of the provisional award, Blocks 98/11b and 98/12 included an area adjacent to the Colter South discovery in Licence P1918. Subsequent to this provisional award, the OGA informed the joint venture group that the area included in the award would be amended, due to a recent change in the demarcation of the landward versus seaward licensing boundary. The revised Blocks being offered were no longer adjacent to the Colter South discovery and no longer included the primary targets that had been identified as part of the application process.

Blocks 98/11b and 98/12 as now offered do not fit with the partner's strategy for developing Licence P1918. As a result, Andalas, as part of the joint venture group, has decided not to accept the petroleum licence offered over the remaining, seaward parts of blocks 98/11b and 98/12. Note that this does not affect the existing Colter and Colter South Discoveries in Block 98/11a (Licence P1918).

Andalas Energy, CEO, Simon Gorringe said "We believe that the joint venture group's decision not to proceed with taking up the OGA's offer is the correct one. The joint venture may bid for the areas adjoining Colter South in the future in which case ADL will review the opportunity at the time."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

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