Latin American energy group Andes Energia now has a 34% working interest in the Vega Grande oil and gas project in the Mendoza province, Argentina, following two separate transactions.

A 24% interest will be satisfied by the exchange of 10.25m ordinary shares to be issued on 1 April. Additionally, as part of an option granted in 2007, the firm has also acquired a further 10% in the project, for which it had already paid $1.7m.

"We are delighted to be able to complete these transactions through which we are becoming owners of proven reserves, oil producer and operator... Vega Grande is an under-exploited and under-managed field with high potential," said chief executive officer Luis Alvarez Poli.

The producing asset has an accumulated production of 1.6 million barrels of oil equivalents and a daily production of 120 barrels.

Andes also has the option to acquire the remaining 66% of the project and a 100% interest in two additional development blocks.


BC

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