18 Apr 2012 07:00
17 April 2012
Andes Energia plc
("Andes" or "the Company")
Proposal to Acquire 51% of YPF S.A. ("YPF") by the Argentinean Government
Following the announcement made on Monday by the Argentinean Government of its decision to acquire 51% of the shares of YPF S.A., the Board of Andes Energia PLC (AIM:AEN; BCBA:AEN), the Latin American energy group, (the "Board") comments as follows:
·; Andes is prepared to continue to work with YPF in the same cooperative manner it has over the last 12 months;
·; The legislation drafted by the Argentinean Government provides that YPF will continue as a "sociedad anónima" or legal corporation, regulated by the Comision Nacional de Valores ("CNV");
·; The proposed legislation encourages Joint Ventures and strategic alliances between YPF and other parties for exploration and production, with the mutually beneficial objective of satisfying the country's hydrocarbon needs and generating exportable stocks;
The Board considers the Argentinean oil and gas market as one of the biggest opportunities in the world today; this is supported by the enormous interest shown by most of the major oil companies to invest in Argentina to develop conventional and unconventional resources.
Neil Bleasdale, Chairman of Andes, commented: "The Board notes the Government's desire to increase Argentinean oil and gas production. We look forward to continuing working to achieve this goal. Overall we remain very optimistic over Argentina long term prospects."
Enquiries:
Andes Energia | Luis Alvarez Poli, CEO Nigel Duxbury, Finance Director
| T: 020 7495 5326 |
Westhouse Securities | Antonio Bossi
| T: 020 7601 6100 |
Buchanan
| Tim Thompson Ben Romney | T: 020 7466 5000 |
Note to Editors:
Andes is a Latin American energy group, with oil and gas, electricity distribution and hydro-electric power interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.
In February 2012, the Company announced a proposed demerger of its E&P activities and electricity assets into separate quoted companies. This is to reflect increasing activities expected in both of the Company's business units and to enhance shareholder value. The Board also believes that the separate entities will provide shareholders and the investment community with greater clarity resulting in improved access to the capital markets.
Plans for the demerger are ongoing as the Board consults with its advisors to determine the most appropriate legal and tax efficient structure. As the plans for the proposed demerger progress, it is the Company´s intention to strengthen the board and management team with a strong representation of specialists in their respective industries.