3 Jun 2013 07:00
3 June 2013
Andes Energia plc
("Andes" or "the Company")
Brazil exploration agreement
Joint Venture with Imetame Energia to explore on-shore Brazilian basins
The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, is pleased to announce that Andes has signed a binding and exclusive Joint Venture agreement (50%-50%) with Imetame Energia S.A. ("Imetame"), a Brazilian company with exploration and production assets in Brazil, to jointly explore some of Imetame's operated exploration assets in on-shore basins in Brazil.
Imetame, has exploration assets with oil and gas discoveries in the Reconcavo, Parnaíba and São Francisco basins. Imetame was recently declared the winner of seven new blocks, in the 11th Brazil Bidding Round held on 14 May 2013; in the Potiguar basin (POT T-569 and POT T-485); Sergipe Alagoas basin (SEAL T-30, SEAL T-31 and SEAL T-62); and Recôncavo basin (REC T-75 and REC T-76). Imetame has a 100% working interest in these blocks and according to the Brazilian regulatory agency, Agencia Nacional do Petroleo ("ANP"), the new contracts are expected to be signed in August 2013.
The 11th Brazil Bidding Round was very competitive compared with the previous bidding round held in Brazil five years ago. The tender process included global firms such as Petrobras, Exxon, Shell, Chevron, Total, BG, BP, BHP, Repsol-Sinopec, Petronas, Ecopetrol and PetroGal and regional firms such as OGX, Petra, Pacific Rubiales and Gran Tierra.
The JV agreement provides Andes with exposure to some of Imetame's north-eastern mature basin assets, as well as new oil and gas discoveries in the Recôncavo Basin, where near term production is expected. The basins in which Imetame operates and is expected to operate, were formed at the time of the separation of the supercontinent Gondwana and can be correlated with some of the most prolific West African basins. All the basins are on-shore, mainly oil prone, near the coast and have the infrastructure necessary to transport the oil, with nearby roads, pipelines, ports and refineries. Andes's participation will be subject to ANP approval.
Alejandro Jotayan, CEO of Andes, commented: "This step in the Company´s development is a crucial part of Andes's diversification growth strategy in highly competitive and valuable markets. This agreement signals a presence in Brazil, one of the more attractive economies of the world with enormous hydrocarbon potential which can deliver immediate value to shareholders."
For further information please contact:
Andes Energia plc
Nicolas Mallo Huergo, Chairman
Rudolph Berends, Vice Chairman
Alejandro Jotayan, CEO
T: +442074955326
T: +541141105150
Westhouse Securities
Antonio Bossi
Jonathan Haines
T: +442076016100
Buchanan
Tim Thompson
Ben Romney
T: +442074665000
Note to Editors:
Andes is a Latin American oil and gas group, with interests in Argentina, Colombia, Paraguay and soon in Brazil. The Company's focus is on the oil and gas sector in South America, which it believes offers premium assets at undervalued prices.