/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
CALGARY, Aug. 21 /CNW/ - Petro Andina Resources Inc.(Petro Andina or the
Company) announced today the results of three exploration wells drilled on the
Gobernador Ayala III Block (GA III) in the Neuquén Basin of Argentina.
The El Renegado x1 well encountered 12 meters of pay in the Lower
Centenario sands at a depth of 620 to 632 meters. On a 24 hour test the well
swabbed at an equivalent stabilized rate of 400 barrels of 19 API oil. Based
on its experience with similar wells in the Lower Centenario trend Petro
Andina believes that this well will be capable of initial production of
approximately 375 barrels of oil per day.
The El Renegado x2 well encountered eight meters of pay in the Lower
Centenario sands at a depth of 618 to 628 meters. The well is undergoing
completion testing at rates equivalent to 360 barrels of oil per day. The
Company expects this well will exhibit similar initial production performance
and stabilized rates to the El Renegado x1 well. The crude quality and
physical properties of these wells are expected to be similar to the Company's
Lower Centenario wells at El Corcobo Norte (ECN).
The El Renegado discovery wells are located eight kilometers to the
southeast of the Company's ECN processing facility, which is currently being
The Gobernador Ayala Oeste x1 well, drilled approximately four kilometers
to the southeast of the El Renegado x1 discovery also encountered the Lower
Centenario reservoir, but the sands were wet and the well was abandoned.
The exploration drilling program is continuing in the area.
The Company was awarded the GA III Block on May 29th, 2007. Under terms
of the joint venture agreement, Petro Andina will operate the GA III Block
with a 70 percent working interest, while the other parties will share the
remaining 30 percent.
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 Corporation 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
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.
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
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: