Petro Andina Resources Inc.

Petro Andina Resources Inc.

January 10, 2005 15:44 ET

Petro Andina Completes $36 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PETRO ANDINA RESOURCES INC.

JANUARY 10, 2005 - 15:44 ET

Petro Andina Completes $36 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2005) - Petro Andina Resources
Inc. announced today that it has completed a CDN. $36 million private
placement of common shares. The private placement of six million shares
was priced at $6.00 and was subscribed for by investors in Canada, the
United States and the United Kingdom.

The proceeds of the financing will be used to fund the Company's 2005
capital budget including appraisal drilling at the Company's JCP
discovery in the province of Mendoza in Argentina. The budget also
includes appraisal and exploration activity across the balance of the
250,000 acre CNQ 7A Block which Petro Andina operates with a 50% working
interest, and on the 120,000 acre CNQ 7/1 Block in which the Company has
a 47.5% working interest.

FirstEnergy Capital Corp. acted as agent to Petro Andina with respect to
the private placement. Existing investors, led by Morrissey Hawthorne
Inc., a Calgary based private equity firm, subscribed for $20 million of
the offering.

Petro Andina Resources Inc. is a private company headquartered in
Calgary, Canada and operating in Argentina.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Petro Andina Resources Inc.
    Wayne Foo
    President
    (403) 213-3850
    or
    Petro Andina Resources Inc.
    Bill Hogg
    Chief Financial Officer
    (403) 213-3855