9 Jan 2013 07:00
9 January 2013
Andes Energia plc
("Andes" or "the Company")
Bridas to invest with YPF in unconventional development in the Vaca Muerta formation
The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, is pleased to note the announcement by YPF S.A. ("YPF") that it has entered into a preliminary agreement with Bridas International S.A. ("Bridas") to develop the unconventional potential of the Vaca Muerta formation in the Bandurria and Bajada de Añelo blocks, under which YPF shall transfer 50% of its net interest in these areas to Bridas. The initial investment committed is US$1.5 billion and YPF will initially transfer to Bridas 184 km² (45,500 net acres). Bridas will also finance a further US$500 million to be invested in subsequent development programs.
This agreement confirms the interest the market has for the unconventional potential of the Neuquen basin and the Board believes it shall attract the attention of more E&P players to consolidate and speed-up the development of unconventional acreage in the Neuquen basin. In this respect, Andes holds world class unconventional assets covering more than 278,000 net acres in the Neuquen basin covering the Vaca Muerta, Molles, Agrio, amongst other prolific hydrocarbon formations.
Nicolás Mallo Huergo, Chairman of the company commented: "The YPF/Bridas agreement confirms the enormous economic value of the unconventional play in Argentina and the validity of our strategy of teaming up with YPF and developing a conventional and unconventional portfolio. We should also consider the fact that YPF has previously signed a MOU with Chevron for another billion-dollar investment program in the Vaca Muerta formation involving the drilling of approximately 100 wells. We are convinced that these agreements with the most sophisticated industry players represent a trend of significant investment in the oil sector in Argentina.".
For further information please contact:
Andes Energia plc | Nicolas Mallo Huergo, Chairman Rudolph Berends, Vice Chairman Leandro Carbone, CEO
| T: +442074955326 |
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, Paraguay and Colombia. The Company's focus is on the oil and gas sector in South America, which offers premium assets at undervalued prices.
Bridas International S.A. is a oil and gas holding company controlled by Argentina's Bulgheroni family. Bridas Corporation holds a 40% interest in Pan American Energy LLC ("Pan American"), with BP plc holding the remaining 60% interest. CNOOC owns 50% of Bridas Corporation. Pan American is the second largest producer of oil and gas in Argentina, after YPF, producing approximately 116,000 bopd and 0.7 bcf/d of gas.