PGR.L Regulatory News (PGR)

12 August 2013

Andes Energia plc

("Andes" or "the Company")

Oil discovery by Tabasco Oil near Andes's LLA49 and LLA-12 blocks

The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, is pleased to note the announcement by Carso Group S.A.B. de C.V. ("Carso") of an oil discovery in the Llanos basin in Colombia, in a block adjacent to two of Andes's blocks.

On 2 July 2013, Carso, the conglomerate controlled by billionaire Carlos Slim Domit, announced to the Mexican Stock Exchange an oil discovery by its subsidiary Tabasco Oil Company, LLC in its Jagüeyes 3432-B block. Production testing is in progress to determine its size and commerciality. The block is located in the north eastern part of the Llanos basin in the Casanare Department of Colombia, and lies adjacent to Andes's LLA-49 and LLA-12 blocks. The discovery well is located approximately 6 km from the western border of LLA-49.

Andes's LLA-49 block covers approximately 532 km² (131,900 acres) and its LLA-12 block covers approximately 512 km² (127,000 acres). LLA-12 is adjacent to the north of the LLA-49 block and to the west of the block LLA-13, owned by Ecopetrol S.A.'s subsidiary Hocol Petroleum Limited. 2D seismic data was recorded on block LLA-49 in the 1980s and two wells have been drilled on the LLA-12 block providing an understanding of the play in this part of the Llanos basin. Andes has been evaluating the seismic and well data from both blocks and has identified a number of potential resource targets. Andes is using seismic re-processing techniques that were not available at the time the original seismic work was carried out in the area and at the same time is progressing the environmental permit application process for new activities in the blocks.

The Jagüeyes discovery confirms the high prospectivity of Andes's Colombian blocks in the north eastern region of the Llanos basin where Andes has blocks covering 1,500 km² gross (372,000 acres).

At the time of the 2012 bid round, five consortia submitted offers for the LLA-49 block that was subsequently awarded to Andes, indicating the considerable interest in the area, even before the Jagüeyes discovery.

Alejandro Jotayan, Andes's CEO commented: "We are very encouraged by this confirmation of the potential of our Colombian blocks and the potential value this discovery brings to the north eastern part of the Llanos basin, de-risking our exploration portfolio significantly. This news together with several other recently announced oil discoveries near Andes's blocks further consolidates the considerable resource potential of our blocks in Colombia."

For further information please contact:

Note to Editors:

Andes is a Latin American oil and gas group, with interests in Argentina, Colombia, Brazil 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.