Petro Andina Resources Inc.
TSX : PAR

Petro Andina Resources Inc.

July 20, 2009 15:15 ET

Petro Andina Provides Update on Unsolicited Offer Process and New Ventures Activities

CALGARY, ALBERTA--(Marketwire - July 20, 2009) - Petro Andina Resources Inc. (TSX:PAR) (Petro Andina or the Company) is pleased to provide an update on the unsolicited offer and shareholder value maximization process; activities in both Trinidad & Tobago and Colombia exploration programs; and timing of second quarter operating and financial results and conference call.

Shareholder Value Maximization Process

The Petro Andina Board of Directors wishes to reiterate its unanimous recommendation that shareholders reject the unsolicited offer to acquire Petro Andina by a wholly-owned subsidiary of Pluspetrol Resources Corporation N.V. (Pluspetrol Offer). Petro Andina's Board of Directors and financial and legal advisors continue to consider and pursue a range of alternatives to maximize shareholder value.

In response to the unsolicited Pluspetrol Offer, data rooms in Calgary, Houston, London and Buenos Aires are now open and active, with a diverse group of international companies having been asked to submit proposals by mid August.

To facilitate one of the potential alternatives, Petro Andina is evaluating the creation, on a tax efficient basis, of a separate publicly listed entity (ExploreCo) to hold Petro Andina's exploration assets in Colombia and Trinidad & Tobago. Further evaluation of the potential ExploreCo is underway. The potential creation of ExploreCo would be subject to all necessary approvals.

New Ventures Activities Update

Petro Andina has been actively progressing its new venture developments in Colombia and in Trinidad & Tobago.

In Colombia, the Company is in the process of awarding a contract for acquiring 450 square kilometers of three-dimensional seismic with an anticipated start time in August 2009.

In Trinidad & Tobago, approximately half of a 216 kilometer two-dimensional seismic acquisition program has been completed and it is anticipated that the program will be completed in August 2009. Next steps will be to process and interpret the data, which is scheduled to be completed early in the fourth quarter of 2009.

Second Quarter Results

Petro Andina expects to announce its second quarter 2009 financial and operating results at close of business on Tuesday August 11, 2009. Petro Andina will host a conference call and live webcast to discuss these results on Wednesday, August 12, 2009 beginning at 10:30 am Mountain Daylight Time (12:30 pm Eastern Daylight Time). Media, analysts or any other interested parties wishing to participate in the call can access it by calling 403-537-9608 or 1-800-952-4972 (toll free in North America). No access codes are required.

The live audio webcast of the conference call will be available through Windows Media Player by following the link posted under the Investor Relations, Events section of the Company's website at www.petroandina.com. Following the conclusion of the call, a link to a replay of the webcast will also be posted on the Company's website.

About Petro Andina Resources Inc.

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 211,000 acre (105,000 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)