Petro Andina Resources Inc.
TSX : PAR

Petro Andina Resources Inc.

September 16, 2009 17:07 ET

Petro Andina Announces Farm-In for Onshore Trinidad Cory Moruga "E" Block

CALGARY, ALBERTA--(Marketwire - Sept. 16, 2009) -

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

Petro Andina Resources Inc. ("Petro Andina" or the "Company") (TSX:PAR) announces that its wholly- owned subsidiary, Petro Andina (Trinidad) Ltd. ("PATL"), has entered into an agreement with Primera Energy Resources Ltd. and Primera Oil and Gas Limited to farm-in (the "Farm-In") to the interests of these companies in the Cory Moruga 'E' Block located in South Central Trinidad (the "Cory Moruga Block"). Primera Energy Resources Ltd. is a TSX Venture Exchange listed issuer engaged in oil and gas activities in Trinidad, India and Canada and Primera Oil and Gas Limited is a private, Trinidad based company that is affiliated with Primera Energy Resources Ltd.through an indirect common controlling shareholder.

The terms of the Farm-In requires PATL to drill two exploration wells on the Cory Moruga Block to a minimum depth of 3,200 metres, with the initial well scheduled to be spud and drilling prior to February 28, 2010. PATL will earn a 50% working interest in the Cory Moruga Block by paying 95% of all costs, to a maximum of US$13.3 million for drilling and evaluating these two exploration wells. The Cory Moruga Block encompasses 7,443 gross acres and targets oil-prone prospects.

In connection with the Farm-In, an application will be made for PATL to become the operator of the Cory Moruga Block. PATL is an approved operator with the Ministry of Energy and Energy Industries of the Republic of Trinidad & Tobago through its participation in the Central Range Blocks in Trinidad & Tobago.

The Farm-In and transfer of operatorship are subject to approval by the Ministry of Energy and Energy Industries and the Ministry of Finance of the Republic of Trinidad & Tobago.

Following the completion of the plan of arrangement contemplated by the arrangement agreement among Petro Andina, 148196 Alberta Ltd., a wholly-owned subsidiary of Petro Andina ("Exploreco"), Pluspetrol Resources Corporation N.V. ("Pluspetrol") and 1462627 Alberta Ltd., a wholly-owned subsidiary of Pluspetrol announced on September 3, 2009, the Cory Moruga Block Farm-In will be held by ExploreCo. If the plan of arrangement is completed, shareholders of Petro Andina will receive cash as well as shares and share purchase warrants of ExploreCo.

This news release is not an offer to sell or a solicitation of offers to buy securities in the United States. Securities have not been and will not be registered under the United States Securities Act and may not be offered or sold in the United States except in transactions exempt from such registration.

About Petro Andina

Petro Andina is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. The Company is continuing to develop its existing reserves and to conduct appraisal and exploration drilling on its 628,000 acre (346,000 net acre) land position in the Neuquen Basin of Argentina. Exploration activities have also begun on its 489,000 acre (244,500 net acre) holdings in the Llanos Basin of Colombia and 218,500 acre (109,000 net acre) holdings onshore Trinidad & Tobago. Petro Andina is headquartered in Calgary, Canada.

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, and obtaining required approvals of regulatory authorities, in Canada, Argentina, Colombia and Trinidad & Tobago. Many of these risk factors are discussed in further detail in the Company'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.

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)