12th Jan 2016 07:00
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, Chairman Alejandro Jotayan, CEO Billy Clegg, Head of Communications
|
T: +54 11 4110 5150
T: +44 20 3757 4983 |
Macquarie Capital (Europe) Ltd | Jon Fitzpatrick Fergus Marcroft Guy de Freitas
| T: +44 20 3037 2000 |
Stockdale Securities Ltd | Antonio Bossi David Coaten
| T: +44 20 7601 6100 |
GMP Europe LLP | Rob Collins Emily Morris
| T: +44 20 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 £110m. 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
Related Shares:
PGR.L