PGR.L Regulatory News (PGR)

13 August 2014

Andes Energia plc

("Andes" or "the Company")

Colombia bidding round 2014 update

Following our announcement on 1 August 2014, the Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, is pleased to announce the definitive awarding of three undeveloped fields with conventional oil discoveries, located in the Llanos basin in Colombia (YD LLA 2, YD LLA 5 and YD LLA 8). The signing of the contracts with the regulator (ANH) is expected to occur in the next three weeks.

Alejandro Jotayan, CEO of Andes, commented: "We are very pleased with the formal completion of the award and we look forward to developing the full potential of these blocks."

Ends

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Note to Editors:

Andes Energia is an oil and gas company focussed onshore South America with a market capitalisation of circa £230m. The Company has operations in Argentina, Colombia, Brazil and Paraguay, representing three of the largest economies and three of the four largest oil producing nations in South America.

The Company has 20MMbbls of conventional 2P reserves in Argentina and certified resources of 600MMBoe, primarily in the Vaca Muerta unconventional formation in Argentina and 7.5million acres across South America.

The Company has approximately 2 million net acres in unconventional plays including 250,000 net acres in the Vaca Muerta formation, which is the second largest shale oil deposit in the world and the only producing shale oil deposit outside of North America. Over 250 wells have already been drilled and fracked in the Vaca Muerta formation.

Andes is the only AIM company on the London Stock Exchange with exposure to Vaca Muerta.

The Company currently produces 1,400 bbls per day in Argentina from 7 conventional fields, with positive cash flows generated.