Petro Andina enters into Joint Venture with Voyager Energy to explore blocks in Trinidad and Tobago


    CALGARY, Jan. 22 /CNW/ - Petro Andina Resources Inc. (Petro Andina or the
Company) is pleased to announce it has entered into a Joint Venture Agreement
to acquire a 50 percent working interest in two onshore exploration blocks in
Trinidad and Tobago. Under the terms of the agreement, Petro Andina will be
Operator of the Central Range Shallow and Central Range Deep Blocks, which are
subject to Production Sharing Contracts (PSCs). The total surface area covered
by the blocks is approximately 214,000 gross acres (107,000 net). The blocks
have world-class oil exploration potential in an under-explored onshore region
of Trinidad and Tobago.
    Petro Andina has entered into the Joint Venture Agreement with Voyager
Energy Ltd., (Voyager) a Calgary based private company. The assignment of
interest and operatorship to Petro Andina through this agreement is subject to
final approval by the Trinidad and Tobago government.
    The two exploration blocks were awarded to Voyager, by the Government of
the Republic of Trinidad and Tobago on January 10, 2008. Voyager will be the
holder of the remaining 50% working interest during the exploration phase. The
Petroleum Company of Trinidad and Tobago (Petrotrin) has the right to
participate for a 35 percent working interest in any development on the
Central Range Shallow Block and for a 20 percent working interest in any
development on the Central Range Deep Block. The PSC's provide for an initial
exploration phase of four years with the option for the parties to enter into
two single year exploration phases beyond the initial phase.
    The Central Range Shallow PSC includes all hydrocarbon rights above
4,500 feet true vertical depth (TVD) and the Central Range Deep PSC includes
all hydrocarbon rights below 4,500 feet TVD. The PSC's have minimum work
commitments in the first four-year term of the contracts that total
100 kilometers of 2D seismic, 250 square kilometres of 3D seismic, one well
drilled to a minimum depth of 12,000 feet and three shallow wells drilled to
4,500 feet or less. Upon final approval by the government of Trinidad and
Tobago, Petro Andina and its partner will each pay a US$2.75 million signature
bonus. Petro Andina will then carry the first US$5 million of Voyager's
seismic acquisition costs during the exploration phase. The Company's total
minimum work commitment in the four-year term, including the Voyager carry, is
estimated to be US$26.25 million.
    The Company estimates that its 2008 capital spending on the Trinidad and
Tobago properties will total US$15 million, primarily for the acquisition of
seismic data. Once exploration targets have been defined, Petro Andina
anticipates drilling will commence in 2009.
    Petro Andina's business development strategy is to acquire acreage with
good potential for significant oil discoveries, in jurisdictions which have
attractive fiscal regimes when measured against the exploration potential that
is available. Trinidad and Tobago has a well established oil and gas industry
with current production of approximately 191,000 barrels of oil and natural
gas liquids per day and 3.9 billion cubic feet of natural gas per day. It is
one of the largest exporters of LNG to the United States and has an
established refining capacity of 175,000 barrels of crude oil per day.
    Wayne Foo, President and CEO of Petro Andina stated, "We are excited to
have finalized an agreement to enter into Trinidad and Tobago. This was a
logical next step into a new jurisdiction where the Company has local
credibility and capability. Both Barry Larson, Chief Operating Officer of
Petro Andina and Dave Taylor, VP of Business Development have extensive
operating experience in the country, so we can move forward without delay."

    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 529,000 acre (297,000 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; William R.A. Hogg,
Vice President, Finance and Chief Financial Officer, Petro Andina Resources
Inc., Phone: (403) 237-1701, Fax: (403) 265-8216

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