Petro Andina Resources Inc.
TSX : PAR

Petro Andina Resources Inc.

October 20, 2009 08:30 ET

Independent Proxy Advisory Firms Recommend Shareholders Vote for Petro Andina Plan of Arrangement and Related Resolutions

CALGARY, ALBERTA--(Marketwire - Oct. 20, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Petro Andina Resources Inc. ("Petro Andina") (TSX:PAR) is pleased to announce that RiskMetrics Group (formerly Institutional Shareholder Services) and Glass Lewis & Co., two leading independent proxy advisory firms, have each recommended that Petro Andina shareholders vote "FOR" the previously announced Plan of Arrangement transaction (the "Arrangement") involving, among others, Petro Andina, Parex Resources Inc. ("Parex") (formerly 1485196 Alberta Ltd. and also referred to as "ExploreCo") and Pluspetrol Resources Corporation N.V. In separate reports, RiskMetrics Group and Glass Lewis & Co. also recommended that Petro Andina shareholders vote "FOR" the following related resolutions:

  • Approval of Parex's Rolling 10% Stock Option Plan
  • Approval of Parex's Shareholder Rights Plan
  • Approval of the Management Private Placement by Parex

The board of directors of Petro Andina recommends that Petro Andina shareholders vote FOR the Arrangement and the other matters to be considered at the special meeting of shareholders to be held at 10:30 a.m. (Calgary time) on Friday, October 30, 2009. Whether or not you intend to attend the meeting, you are asked to complete, sign, date and return the form of proxy, which accompanied the management information circular of Petro Andina dated September 29, 2009, by no later than 10:30 a.m. (Calgary time) on Wednesday, October 28, 2009.

Petro Andina has retained Kingsdale Shareholder Services Inc. to act as information agent. Any questions or requests for assistance may be directed to Kingsdale at 1-877-657-5857 or email contactus@kingsdaleshareholder.com.

Permission to use recommendations from the RiskMetrics Group and Glass Lewis & Co. reports was neither sought nor obtained.

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.

Forward-Looking Statements

Certain statements regarding Petro Andina Resources Inc., including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Petro Andina's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such risks and uncertainties include, but are not limited to: the impact of general economic conditions in Canada, Argentina, Colombia and Trinidad & Tobago, industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada, Argentina, Colombia and Trinidad & Tobago, competition, the lack of availability of qualified personnel, fluctuations in commodity prices, the results of exploration and development drilling and related activities, imprecision in reserve estimates, the production and growth potential of Petro Andina's assets, fluctuations in foreign exchange or interest rates, the ability to access sufficient capital from internal and external sources, obtaining required approvals of regulatory authorities, in Canada, Argentina, Colombia and Trinidad & Tobago and the consummation of the Arrangement and Management Private Placement being dependent on the satisfaction of customary closing conditions, regulatory approvals, the approval of Petro Andina's shareholders the approval of the Court. Many of these risk factors are discussed in further detail in Petro Andina's Annual Information Form dated December 31, 2008 on file with Canadian securities commissions. Readers are also referred to the risk factors described in other documents that Petro Andina files from time to time with securities regulatory authorities.

Although the forward-looking statements contained in this Press Release are based upon assumptions which Management believes to be reasonable, Petro Andina cannot assure shareholders that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, Petro Andina has made assumptions regarding: current commodity prices and royalty regimes; timing of receipt of regulatory approvals; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates; future operating costs; and other matters.

Accordingly, Petro Andina gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. Petro Andina undertakes no obligation to publicly update or revise any forward-looking statements other than required by applicable securities law.

The Toronto Stock Exchange has not received and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Petro Andina Resources Inc.
    Michael Kruchten
    Investor Relations
    (403) 517-1733
    (403) 265-8216 (FAX)
    or
    Petro Andina Resources Inc.
    Kenneth G. Pinsky
    Vice President, Finance and Chief Financial Officer
    (403) 517-1729
    (403) 265-8216 (FAX)