TIDMAEN

RNS Number : 5201L

Andes Energia PLC

12 January 2016

12 January 2016

Andes Energia plc

("Andes" or "the Company")

Argentina Domestic Oil Price

The Board of Andes (AIM: AEN; BCBA: AEN) is pleased to announce that on 4 January 2016, Juan Aranguren, the Argentine Minister of Energy, informed oil producing companies that the government has reset the local price of crude oil at US$67.50 per barrel.

This new price is effective from 1 January 2016 and follows from a devaluation of the AR$, which took place in the latter part of 2015. This means that oil companies operating in the Neuquen basin will now receive approximately AR$930 per barrel compared to approximately AR$740 per barrel in 2015.

The new price is more than double the current international price of approximately US$32 per barrel and provides a strong incentive to continue to invest in exploration and production activity in the country and provides evidence of the government implementing policies to support the development of Argentina's domestic resources.

For further information please contact:

 
 
   Andes Energia plc      Nicolas Mallo Huergo,     T: +54 11 
                          Chairman                  4110 5150 
                          Alejandro Jotayan, 
                          CEO                       T: +44 20 
                          Billy Clegg, Head         3757 4983 
                          of Communications 
 Macquarie Capital      Jon Fitzpatrick           T: +44 20 
  (Europe) Ltd           Fergus Marcroft           3037 2000 
                         Guy de Freitas 
 Stockdale Securities   Antonio Bossi             T: +44 20 
  Ltd                    David Coaten              7601 6100 
 GMP Europe LLP         Rob Collins               T: +44 20 
                         Emily Morris              7647 2800 
 Camarco                Georgia Mann              T: +44 20 
                                                   3757 4986

Note to Editors:

Andes Energia plc is an oil and gas exploration and production company focused on onshore assets in South America with a market capitalisation of circa GBP110m. The Company has its main operations in Argentina and Colombia.

The Company has approximately 25* MMbbls of conventional 2P reserves, and it also has certified prospective resources of 640 MMboe, primarily in the Vaca Muerta unconventional development in Argentina and over 7.5 million acres across South America.

The Company has approximately 250,000 net acres in the Vaca Muerta formation, which is the second largest shale oil deposit in the world and the only producing shale oil deposit outside of North America, currently producing 45,000 boepd. Over 300 wells have already been drilled and fracked in the Vaca Muerta formation.

Andes is the only AIM quoted company on the London Stock Exchange with exposure to the Vaca Muerta shale.

The Company currently produces approximately 3,200* boepd in Argentina and Colombia from 6 conventional fields in Argentina and 2 in Colombia, with positive cash flows generated.

*Includes 100% of Interoil's net reserves and production

This information is provided by RNS

The company news service from the London Stock Exchange

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January 12, 2016 02:00 ET (07:00 GMT)

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