PGR.L Regulatory News (PGR)

19 Dec 2007 07:01

Andes Energia PLC19 December 2007 ANDES ENERGIA PLC ('Andes Energia' or 'the Company') EXERCISE OF OPTION BOLSTERS ASSET BASE IN ARGENTINA'S MAJOR GAS PRODUCING BASIN Andes Energia (AiM:AEN), the Latin American energy group, is pleased to announcethat it has exercised its option to acquire a 20% interest in the Corralera andMata Mora blocks in the province of Neuquen, the major gas producing basin inArgentina This will significantly bolster Andes Energia's oil and gas assets, as itextends its reach into Argentina's most prolific gas basin, Neuquen, where theCompany already has acreage in the Rio Negro Province. Andes now has interestsin nine oil and gas license blocks in Argentina whilst it also holds an optionto acquire a 50% interest in a producing oil field in the province of Mendoza. HIGHLIGHTS • Acquisition of a 20% participation in two licence blocks for US$480,000; • Investment commitment of Andes Energia expected to be approximately US$1.2 million over three years; • Corralera has a discovery well, NQ PB X-3; and • Andes Energia will co-own the blocks with Ketsal S. A. (18%) and Kilwer S.A. (62%). Since re-admission to AiM in October, Andes Energia has acquired a controllinginterest in Hidroelectrica Ameghino S.A, a hydro power plant. The Company hasalso extended its option to acquire the remaining 50% of SODEMSA, which has a51% controlling interest in EDEMSA, the main electricity distribution company inthe province of Mendoza. Earlier this month Andes secured a US$5 million loan facility and also raisedapproximately £9.1 million (US$18.5 million) via a placing. The new monies willbe used to part fund the acquisition of the remaining 50% indirect interest inSODEMSA for approximately US$30 million. Commenting on the exercise of the option, Chief Executive Officer Luis AlvarezPoli said: 'We are delighted to further boost our exposure to the Neuquenprovince in blocks with tested production and look forward to furtherstrengthening our portfolio in the coming months. The focus at Andes Energiaremains firmly on extracting value across the Argentine energy chain." Enquiries: Andes Energia plc T: 020 7495 5326Luis Alvarez Poli, CEONigel Duxbury, Finance Director Arbuthnot Securities T: 020 7012 2000James SteelAntonio Bossi Bishopsgate Communications T: 020 7562 3350Maxine BarnesNick Rome Notes to EditorsAndes Energia is a Latin American energy group, with electricity distribution,hydro electric power and oil and gas interests in Argentina. The Company joinedAiM through a reverse take-over of Ragusa Capital plc. The Company's focus is onthe Argentinean energy sector, which it believes offers premium assets atundervalued prices. This information is provided by RNS The company news service from the London Stock Exchange