PGR.L Regulatory News (PGR)

9 July 2013

Andes Energia plc

("Andes" or "the Company")

Well Intervention

The Board of Andes (AIM: AEN; BCBA: AEN), a Latin American E&P group, is pleased to provide an update on its intervention campaign as operator of the "El Manzano West" block.

Highlights:

·; 100% increase in production from the "El Manzano West" area over pre-intervention levels

·; The Agrio formation test reacted as expected to the acidizing

El Manzano West is a block located in the northern region of the Neuquén basin where Andes holds a 100% interest in the Agrio formation and a 40% carried interest in the other formations.

During the month of June, well EMx4 was intervened, with the aim of performing a major maintenance and acid stimulation procedure to improve production.

The well intervention was completed successfully and after about one month, incremental production stabilized at 90 bopd; a 100% increase over the pre-intervention "El Manzano West" production level.

These results are encouraging and we plan to study the feasibility of implementing a delineation and development plan by performing 3D re-interpretation and petrophysical studies in existing wells.

Next Steps:

·; Continue with the workover programs; the next well to be intervened is EM2

·; Re-enter a further temporary shut-in well and carry out re-completion works in the Agrio formation

Nicolás Mallo Huergo, Chairman of Andes, commented, "We are very pleased with the results of this work, which has doubled production levels. We are hopeful our other work programs will produce similar positive results."

Qualified Person Review:

In accordance with AIM guidance for mining, oil and gas companies, Mr. Juan Carlos Esteban has reviewed the information contained in this announcement. Mr. Juan Carlos Esteban, an Officer of the Group, is a petroleum engineer with over 20 years of experience and is a member of the SPE (Society of Petroleum Engineers).

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.