Petro Andina Resources Inc. announces new acreage


    CALGARY, Dec. 19 /CNW/ - Petro Andina Resources Inc. (Petro Andina or the
Company) announced today that it has signed a joint venture agreement with
Pampetrol S.A.P.E.M., the provincial oil company of La Pampa, with respect to
the Gobernador Ayala I Exploration Concession (GA I Block) in the Neuquén
Basin of Argentina.
    The GA I Block comprises 293 square kilometres (72,400 acres) and is
located adjacent to the northeast boundary of Petro Andina's operated CNQ-7/A
acreage. The Company's land position along the northeast flank of the Neuquén
Basin now totals 529,000 acres (net 297,000 acres).
    Under terms of the joint venture agreement, Petro Andina will operate the
GA I Block with a 50 percent working interest. Pampetrol will hold the
remaining 50 percent. The Company will drill two exploratory wells at its sole
expense during a six month period commencing December 5, 2007. The Company
will then have a three month evaluation period during which it can elect to
complete the earning of its interest by carrying out a work program. Including
the cost of the initial two wells, this work program is estimated to be
approximately two million US dollars. Petro Andina will recover Pampetrol's
share of the costs, including the exploration expense, out of production from
the Block.

    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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