Pluspetrol announces agreement to acquire Petro Andina Resources Inc.

    TORONTO, Sept. 3 /CNW/ - Pluspetrol Resources Corporation N.V.
("Pluspetrol") today announced that it has entered into an arrangement
agreement with Petro Andina Resources Inc. (TSX: PAR) ("Petro Andina")
pursuant to which Pluspetrol, through its wholly-owned subsidiary, 1462627
Alberta Ltd., will acquire all of the issued and outstanding class A shares of
Petro Andina for cash consideration of Cdn.$7.65 per share pursuant to a plan
of arrangement (the "Arrangement"). As part of the Arrangement, Petro Andina
shareholders will also receive for each Petro Andina share one common share
and one-tenth of a common share arrangement warrant of a new company which
will hold all of the non-Argentine assets of Petro Andina following completion
of the Arrangement.
    Completion of the Arrangement is subject to customary conditions,
including court approvals, approval by Petro Andina shareholders and the
receipt of all required regulatory approvals.
    The board of directors of Petro Andina has voted unanimously to recommend
the Arrangement to its shareholders. In connection with the Arrangement,
certain directors and officers of Petro Andina will enter into agreements
pursuant to which they will agree to vote in favour of the Arrangement.

    Pluspetrol's Public Offer

    Pluspetrol also announced today that, in light of entering into the
arrangement agreement with Petro Andina, and, as certain conditions of its
offer cannot be satisfied, Pluspetrol's wholly-owned subsidiary, 1462627
Alberta Ltd., is formally withdrawing its Cdn.$8.10 per share offer for all of
the shares of Petro Andina, and will not be proceeding further with its offer.

    About Pluspetrol

    Pluspetrol, a corporation existing under the laws of The Netherlands,
together with its subsidiaries and affiliates, is a leading energy player
mainly focused on the exploration and production of hydrocarbons in Latin
America. Pluspetrol, a privately-owned energy company, has interests in
Argentina, Peru (where it is the largest oil producer), Bolivia, Venezuela,
Colombia, and Chile.
    With net reserves of approximately 1,200 Million barrels of oil
equivalent, Pluspetrol's operated oil and associated liquids production is
120,000 barrels per day and operated gas production is 1,350 Million cubic
feet per day. Pluspetrol is also involved in power generation activities in
Argentina, where installed capacity reaches 1,100 megawatts, and in other
segments of the value chain, such as transportation of oil and gas and
    Pluspetrol began its operations in Argentina in 1977, in the Neuquen
Basin, and since then has become an important player in the Argentinean energy
sector with 11 exploitation concessions and operated production of
approximately 370 Million cubic feet per day of gas and 16,000 barrels per day
of oil and associated liquids.
    Pluspetrol actively continues to pursue the growth of its hydrocarbons
reserves in Latin America through the development of proven reserves,
exploration and acquisitions as part of its long-term strategy in every
country in which it operates.

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