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Andes Energia: new Argentinian oil discovery company (AEN)

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Creator london calling Created 30 Nov 2007 Posts 39 Last Post 4 years ago
It looks like I am the first to realise the AEN is now the epic for Andes Energia which listed on AIM on the 2nd October out of the old Ragusa. on the 2nd Nov they announced an option to acquire oil exploration assets in Argentina. Here are the relevant RNS. In addition, they have acquired a share in hydroelectric assets in Argentina.


("Andes Energia" or "the Company")


Andes Energia (AiM:AEN), the Latin American energy group, is pleased to announce
that it has signed two option agreements to acquire, subject to satisfactory
completion of due diligence, further oil and gas assets. The first option is to
acquire a 50% interest in a producing oil field in the province of Mendoza
("Vega Grande") and the second option is to acquire a 20% interest in two blocks
in the province of Neuquen, the major gas producing basin in Argentina
("Corralera & Mata Mora"). If exercised, these options will significantly
bolster the Company's oil and gas assets. Importantly, if the Vega Grande option
is exercised, it will be Andes Energia's first producing oil asset and the
Corralera block has an existing discovery well.


* Option to acquire a 50% interest in a producing oil field
* Andes Energia has paid an initial amount of US$1.3m in cash to secure
the option, which will be refunded if the option is not exercised
* A further payment of US$9.2m will be payable in cash upon exercise of
the option with possible further consideration payable in Andes Energia
shares depending on the level of reserves discovered
* If exercised, this will be Andes Energia's first producing oil field and
will extend its oil and gas assets into the Mendoza province
* If exercised, the final owners will be Andes Energia 50%, Petro Saudi
Inc. 24% and Grecoil y Cia SRL 26%
* Exercise of the option may constitute a related party transaction


* Option to acquire a 20% participation in two licence blocks
* US$480,000 payable in cash upon exercise of the option
* Investment commitment of Andes Energia expected to be approximately
US$1.2 million over 3 years
* Corralera has a discovery well, NQ PB X-3
* If exercised, the final owners will be Andes Energia 20%, Ketsal S.A 18%
and Kilwer S.A. 62%

Since re-admission to AiM in October, Andes Energia has acquired a controlling
interest in Hidroelectrica Ameghino S.A, a hydro power plant. The Company has
also recently extended its option to acquire the remaining 50% of SODEMSA, which
has a 51% controlling interest in EDEMSA, the main electricity distribution
company in the province of Mendoza.

Commenting on the signing of these options, Chief Executive Officer Luis Alvarez
Poli said: "We are delighted with the fact that we have been able to identify
opportunities to grow our asset base at such a pace, in line with our stated
business strategy. Vega Grande will give us existing production in an
under-managed and under-exploited field, whilst Corralera & Mata will give us
the opportunity to enter the Neuquen province in blocks with tested production."

RNS Number:9117E
Ragusa Capital PLC
02 October 2007

2 October 2007

Andes Energia plc
("Andes" or "the Company")
Acquisition, Subscription, and Re-admission

Further to the announcement on 1 October 2007, Andes, formerly Ragusa Capital
plc, announces the successful completion of the proposals in connection with
the acquisition of certain assets in Argentina and consequently that
100,904,036 new ordinary shares of 10p each have been admitted to trading, and
dealings commenced in the enlarged share capital of the Company on AIM at
8.00 a.m.today.

Nicolas Mallo Huergo, Non-executive Director of Andes and President of Andes
Energia Argentina S.A, commented: "We are delighted at the successful completion
of this transaction. Andes now has a strong international management team with
a strong local Argentinean shareholder base, which will enable it to achieve
its stated ambition to become a major Latin American focussed Energy Company".

Michael Stevens, Executive Chairman of Andes, commented: "The combination of
energy production and distribution assets will provide a solid foundation on
which to build the oil and gas exploration activities."

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