12 May 2011 07:00
12 May 2011
Andes Energia plc
("Andes" or the "Company")
Chubut Farm-In
Andes, the oil and gas, electricity distribution and hydro-electric power company in Argentina, is pleased to announce the successful conclusion of a farm-in agreement with YPF S.A. ("YPF"), Argentina's largest oil and gas company and part of the Repsol group in Spain, for the Confluencia, San Bernardo, Sierra Cuadrada, Buen Pasto, Rio Senguerr and Pampa Salamanca Norte blocks in the province of Chubut. The agreement is subject to the formalisation of new UTEs. Following completion, Andes will hold a 28% carried interest in the blocks and is also entitled to a 2% share of YPF's interest in net production. Under the agreement, YPF will fund exploration work program commitments up to the stage of commercial discovery. Furthermore, YPF will further fund the first US$12 million of Andes's share of production costs following a declaration of commerciality.
Juan Carlos Esteban, CEO of Andes Oil and Gas commented:
"We are delighted to have secured a second agreement with YPF, following the previous one in respect of our Neuquen licences. We have conducted a significant amount of work on these blocks and we are particularly pleased, based on the results of this work, that YPF has recognised the development potential in these blocks by entering into this second agreement with us. This relationship with YPF will help us to develop these six areas and catch up with our original development plans. This agreement further consolidates our relationship with YPF, the largest oil and gas development company in Argentina."
For further information please contact:
Andes Energia plc | Luis Alvarez Poli, CEO Nigel Duxbury, FD
| T: +442074955326 |
Arbuthnot Securities | Antonio Bossi Ed Groome
| T: +442070122000 |
Buchanan
| Tim Thompson Ben Romney | T: +442074665000 |
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.
YPF is Argentina's largest oil company and is controlled by Repsol YPF, S.A. ("Repsol"), Spain's largest oil and gas company. Repsol has operations in Europe, Latin America, North America, the Middle East, Asia and North Africa and explores for and produces oil and natural gas, refines petroleum and transports petroleum products and liquefied petroleum gas. At the end of 2009 it had certified reserves of 1,013 million barrels of oil equivalent according to its filings with the NYSE.