17th Sep 2008 14:14
Andes Energia plc
("Andes" or "the Company")
Exploration in San Jorge basin update
The Board of Andes (AIM:AEN), the Latin American energy group, is pleased to provide an update on exploration at the Confluencia licence area within the San Jorge basin.
Andes has a 20 per cent. carried interest, a 3 per cent. working interest and a right to a 20 per cent. royalty over this licence.
HIGHLIGHTS
The first exploratory well, named Kil.Ch.EBl.x-1001 (El Bloque), will have a total maximum depth of 2,000 metres below derrick floor;
It is located in the Province of Chubut at an elevation of 469 metres above sea level; and
The Chubut authorities have approved an Environmental Impact Assessment, prepared by Natural Survey Consulting.
Civil works have started, and final surveying of location and access road has been completed. The well platform is ready to receive materials; delivery and mobilization of the rig and other ancillary equipment from San Antonio International is expected by the end of the week.
Testing will be carried out immediately after the drilling phase is completed. It is anticipated that it will take approximately 20 days to drill to target depth. Given our experience of other parts of the basin, the testing programme will probably include a provision for fracturing.
Luis Alvarez Poli, Chief Executive Officer of Andes stated: "We are pleased with the continued progress on the Confluencia licence area. This is an exciting step as we develop our first exploration drilling programme. We look forward to further developing the project and will update the market in due course."
Enquiries:
|
Andes Energia |
Luis Alvarez Poli, Chief Executive Officer Nigel Duxbury, Finance Director |
T: 020 7495 5326 |
|
Arbuthnot Securities |
James Steel Antonio Bossi |
T: 020 7012 2000 |
|
Bishopsgate Communications |
Maxine Barnes Nick Rome |
T: 020 7562 3350 |
Note to Editors:
Andes is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.
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