Petro Andina closes credit facility with Macquarie Bank Limited



    /NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
    UNITED STATES/

    CALGARY, Sept. 24 /CNW/ - Petro Andina Resources Inc. (the "Company") is
pleased to announce that the Company, through its subsidiary, Petro Andina
Resources Ltd., has closed a USD$100 million senior first lien secured credit
facility, to be provided by Macquarie Bank Limited. Initial availability under
the facility is USD$28 million at a LIBOR related interest rate. Availability
of funds will be updated semi-annually based on a determination by the bank
that the Company's oil and gas reserves will support additional lending
amounts. The Company uses GLJ Petroleum Consultants as its independent
petroleum engineers.
    Proceeds from the credit facility will be used to fund ongoing
development of the Company's oil and gas concessions in Argentina.

    About Petro Andina Resources Inc.

    Petro Andina is engaged in the exploration for and development and
production of oil and natural gas in Argentina and, to a lesser extent, in
Canada. The Company is continuing to develop its existing reserves and to
conduct appraisal and exploration drilling on its 457,000 acre (260,000 acre
net) land position in the Neuquén basin. Petro Andina is headquartered in
Calgary, Canada.

    This news release does not constitute an offer to sell securities, nor is
it a solicitation of an offer to buy securities, in any jurisdiction. All
sales will be made through registered securities dealers in jurisdictions
where the offering has been qualified for distribution. The securities offered
are not, and will not be, registered under the securities laws of the United
States of America, nor any state thereof and may not be sold in the United
States of America absent registration in the United States or the availability
of an exemption from such registration.

    The Toronto Stock Exchange has not received and does not accept
    responsibility for the adequacy or accuracy of this news release.

    Forward-Looking Statements

    Certain information set forth in this press release, including a
discussion of future plans and operations, contains forward-looking statements
that involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
some of which are beyond Management's control, including but not limited to,
the impact of general economic conditions, industry conditions, fluctuation of
commodity prices, fluctuation of exchange rates, environmental risks, industry
competition, availability of qualified personnel and management, stock market
volatility, timely and cost effective access to sufficient capital from
internal and external sources. Actual results, performance or achievement
could differ materially from those expressed in or implied by these
forward-looking statements. For more information please contact Petro Andina
Resources Inc.





For further information:

For further information: Melesia Kasha, Investor Relations, Petro Andina
Resources Inc., Phone: (403) 237-1700, Fax: (403) 265-8216; Bill Hogg, Chief
Financial Officer, Petro Andina Resources Inc., Phone: (403) 237-1701, Fax:
(403) 265-8216

Organization Profile

PETRO ANDINA RESOURCES INC.

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