Andes Energia reports the acquisition of certain interests in licences in Argentina.

Patagonia Oil and Gas S.A. (Patagonia) Under the consortium agreement between Andes and Patagonia (the Consortium), Union Transitoria de Empresas consisting of the Consortium and the operator were awarded three exploration licences covering six blocks in the province of Chubut and one block in the province of Rio Negro in Argentina

Andes has reached agreement to acquire from the owners of Patagonia, their respective interests in the consortium. As a result of this transaction Andes now has a 100 per cent. interest over these licences. The transaction does not fall under Rule 12 of the AIM Rules.

Andes is extremely pleased to secure the buy-out of its joint venture partner, which will enable it to control and stimulate activity on these licences. Andes is in advanced negotiations with one of the major oil companies in Argentina in a farm in transaction in these blocks. The Board of Andes is confident that it will successfully finish the exploration of these blocks, since most of the obligations under the licence agreements have already been fulfilled.

The results of the Airborne survey undertaken by Carson Helicopters, Inc combined with the Soil Gas geochemical survey, performed by Exploration Technologies, Inc, and the existing well information, confirmed the presence of active petroleum systems in Confluencia, San Bernardo and Buen Pasto blocks. Wells El Bloque 1, Kil.ch.EB.x-1001and Meseta del Humo x1 all showed presence of hydrocarbons that require further studies.

A new work programme is being formulated to deepen the knowledge of the blocks and their commercial potential.

Completion of the acquisition is conditional and will occur concurrently with the completion of the acquisition referred to in the announcement released earlier today.

Luis Alvarez Poli, Chief Executive Officer, commented, "We are delighted to complete this acquisition, which should now enable us to accelerate the exploration activity on these blocks. The entrance of major Chinese players like SINOPEC and CNOOC in the Patagonia region confirms the enormous interest in the San Jorge Basin.".

Tags: Andes Energia