18 May 2017 07:00
Andes Energia plc
("Andes" or "the Company" or "Group")
Interoil
Andes announces that it has entered into an agreement (the "Agreeement") with Canacol Energy Ltd. ("Canacol") and Andes Interoil Limited ("AIL") in relation to its holding in AIL. AIL is currently owned 51% by Andes and 49% by Canacol and is the joint holding company for shares in Interoil Exploration and Production ASA ("Interoil"). Pursuant to the Agreement, Canacol shall transfer all its shares in AIL to Andes against Andes transferring to Canacol 16,172,052 shares in Interoil currently held through AIL.
Following these transactions, Andes' economic interest in Interoil will remain unchanged at 26% of the total share capital and votes of Interoil but the 16,832,136 shares in Interoil representing such interest will be held through its wholly owned subsidiary AIL. Canacol will continue to hold 16,172,052 shares in Interoil, equal to 25% of the total share capital and votes of Interoil.
Furthermore, following proposed changes to the composition of the board and senior management of Interoil, it has been determined that, subject to these changes being implemented, the Company will no longer be deemed to control Interoil. Therefore Interoil will no longer be fully consolidated and going forward Andes's 26% share of the results and net assets of Interoil will be equity accounted, in the consolidated results of the Group.
For further information, please contact:
Andes Energia plc |
Nicolas Mallo Huergo, Chairman Billy Clegg, Head of Communications
|
T: +54 11 5530 9920
|
Stockdale Securities | Antonio Bossi David Coaten
| T: +44 20 7601 6100 |
Panmure Gordon | Adam James | T: +44 207 886 2500 |
| Atholl Tweedie |
|
| Tom Salvesen |
|
|
|
|
Camarco | Gordon Poole
| T: +44 20 3757 4980 |
Note to Editors:
Andes Energia plc is an oil and gas exploration and production company focused on onshore assets in South America with a market capitalisation of circa £206m. The Company has its main operations in Argentina and Colombia.
The Company has approximately 25* MMbbls of conventional 2P reserves, and it also has certified prospective resources of 640 MMboe, primarily in the Vaca Muerta unconventional development in Argentina and over 7.5 million acres across South America.
The Company has approximately 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, currently producing 45,000 boepd. Over 300 wells have already been drilled and fracked in the Vaca Muerta formation.
Andes is the only AIM quoted company on the London Stock Exchange with exposure to the Vaca Muerta shale.
*Includes 100% of Interoil's net reserves and production in which Andes has a 26.02% interest