PGR.L Regulatory News (PGR)

27 July 2012

Andes Energia plc

("Andes" or the "Company")

Issue of Equity

The Board of Andes announces a director's transaction in the ordinary shares of the Company ("Ordinary Shares").

Investment of outstanding fees in new Ordinary Shares

Rudolph Berends, a Director of Andes, has elected to invest outstanding fees due to him in 157,703 new Ordinary Shares to be issued by the Company at a placing price of 36.55 pence per Ordinary Share.

Application has been made for the 157,703 new Ordinary Shares to be admitted to AIM. It is expected that admission of the new Ordinary Shares will become effective on 1 August 2012.

Following this transaction, the above Director's beneficial interest in the Company is 157,703 ordinary shares representing 0.08% of the enlarged issued share capital.

Total Voting Rights

Following admission of the 157,703 Ordinary Shares, the total number of issued Ordinary Shares will be 198,958,992 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

For further information please contact:

Note to Editors:

Andes is a Latin American oil and gas group, with interests in Argentina and Paraguay. The Company's focus is on the oil and gas sector in South America, which it believes offers premium assets at undervalued prices.