Petro Andina Resources Inc.

Petro Andina Resources Inc.

June 11, 2009 08:58 ET

Petro Andina Resources Inc. Announces Closing of $27.1 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - June 11, 2009) -


Petro Andina Resources Inc. (TSX:PAR) (Petro Andina or the Company) is pleased to announce that it has completed its previously announced bought deal equity financing (the Offering). At closing of the Offering 4,370,000 common shares were issued at a price of $6.20 per common share for aggregate gross proceeds of $27,094,000 (including common shares issued upon exercise in full by the underwriters of the over-allotment option). The underwriting syndicate was led by FirstEnergy Capital Corp. and included Scotia Capital Inc., Peters & Co. Limited, Raymond James Ltd., RBC Capital Markets, Tristone Capital Inc. and Wellington West Capital Markets Inc.

The net proceeds from the Offering will be used to increase available working capital. This additional working capital, along with existing working capital, will be used to accelerate the Company's activities on its Colombia blocks and Trinidad & Tobago blocks. Petro Andina has been encouraged by the results of its initial evaluation work in its Colombia and Trinidad & Tobago new ventures. In the second half of 2009 and into 2010 the Company plans to accelerate the pace of activity on its Colombia blocks and Trinidad & Tobago blocks with funding to be partially provided by the net proceeds of the Offering.

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 495,000 acre (247,500 net acre) holdings in the Llanos Basin of Colombia and 211,000 acre (105,500 net acre) holdings onshore Trinidad & Tobago. Petro Andina is headquartered in Calgary, Canada.

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, including management's assessment of future plans and operations, timing of closing of the offering, use of proceeds from the offering and the Company's planned operations and expenditures in Colombia and Trinidad & Tobago 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 March 31, 2009 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.

With respect to forward-looking statements contained herein, Petro Andina has made assumptions regarding: current and future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future operating costs; and other matters.

Although the forward-looking statements contained in this press release are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure potential investors that actual results will be consistent with these forward-looking statements. Accordingly, Petro Andina gives no assurance nor makes any representations or warranties 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, except as required by 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)
    Petro Andina Resources Inc.
    Kenneth G. Pinsky
    Vice President, Finance and Chief Financial Officer
    (403) 517-1729
    (403) 265-8216 (FAX)