Andes
Profitable Growth at Low Risk
AIM: AEN.L
www.andesenergiaplc.com.ar
London, June 2013
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ANDES ENERGIA
Latinamerican low risk diversified oil & gas player.
Founded in 2007 and listed on AIM of LSE.
Sizable portfolio of highly prospective assets
7 million net acres in productive basins, 46 blocks.
600 MMboe resources conventional & unconventional oil
19 MMbbl 2 P reserves and 1,700 bbl/d.
Strong Management Team with proven ability to grow profitably.
Outstanding exploration record performance of 70% success.
Strong capabilities to manage local political risks.
COLOMBIA
Valle Medio Magdalena - 8
Llanos - 51
BRASIL
Llanos - 3
Llanos -12
Colombia
POT - 485
Llanos - 49
POT – 569
Llanos - 79
SEAL T-30
Llanos - 28
SEAL T-31
Llanos - 2
Brasil
SEAL T-62
REC T-75
ARGENTINA
REC T-76
Salta
Güemes
Valles Calchaquíes
Cobres
Mendoza
Chachahuen
Malargüe
Pampa del Sebo
Coiron I y II
Ñacuñan
San Rafael
Zampal Norte
Vega Grande
La Paloma
Cerro Alquitrán
Los Buitres
Bakú
La Brea
El Manzano
Chañares Herrados
Paraguay
PARAGUAY
Repatriación
Argentina
ARGENTINA
Neuquén
Corralera
Matamora
Río Negro
Laguna El Loro
Chubut
Ñirihuau
Sierra Cuadrada
Río Sengerr
Confluencia
San Bernardo
Buen Pasto
Pampa Salamanca Norte
LAND POSITIONING GROWTH
Colombia, Argentina, Brazil & Paraguay
# blocks
50
45
40
35
30
25
20
15
10
5
0
2010
2011
2012
+7.0MM net acres
2013
CONSISTENT RESERVES GROWTH
Reserves growth
20
18
+50%
Reserves 2P MMboe
16
14
12
10
+100%
8
6
+200%
4
2
0
2008
2009
2010
2011
2012
2013
SUCCESFUL LOCAL MANAGEMENT
TEAM
Alejandro Jotayan, CEO (ex Repsol-YPF: Head of Upstream
Strategy and M&A, ex Techint Group: Corporate Planning &
Control Manager for Energy Business. Pioneer in the shale oil
development in Argentina).
Juan Carlos Esteban, COO (ex YPF Head of Technical
Staff; Operation manager).
Alan Stark, Exploration VP (ex Occidental Exploration VP)
Germán Ranftl , CFO (ex ING Bank Corporate Finance VP)
Geosciences senior staff: Miguel Marnetti, Miguel Gait, Raul
Maricich (ex YPF and Occidental)
STRATEGY
The company’s current growth strategy is based
on:
 To develop current conventional and
unconventional fields, in partnership or by itself, in
order to increase production.
 To explore on-shore low-risk producing basins in
partnership and even being carried, in 4 countries,
10 basins, in order to increase proved reserves.
 To be active in M&A, monitoring and executing
business opportunities, in order to acquire
production.
ARGENTINA. UNLOCKING POTENTIAL
Argentina has:
 a growing energy demand and needs to import circa 15
Bus$ of energy a year.
 spare capacity in pipelines and plants.
 a growing service industry for unconventional
 some changes in the country energy policy. Oil at 75
us$/bbl and new gas up to 7 us$/MMbtu.
 Andes is the third largest acreage holder in Argentina, with
6.5 MM net acres and 28 producing, development and
exploration blocks.
 Andes has Conventional and Unconventional
Developments.
 Andes Current oil production of 1700 bbl/d, 2P reserves
19MM bbls*, Certified resources of +600MMboe*.
*NSAI & Ryder Scott
ARGENTINA. SIGNIFICANT PORTFOLIO
Salta
Presence in:
5 Provinces
4 producing basins.
6.5 MM net acres
Güemes
Valles Calchaquíes
Cobres
Mendoza
Chachahuen
Malargüe
Pampa del Sebo
Coiron I y II
Ñacuñan
San Rafael
Zampal Norte
Vega Grande
La Paloma
Cerro Alquitrán
Los Buitres
Bakú
La Brea
El Manzano
Chañares Herrados
Puesto Pozo
Neuquen
Corralera
Matamora
Conventional &
Unconventional
resources
Río Negro
Laguna El Loro
Chubut
Ñirihuau
Sierra Cuadrada
Río Sengerr
Confluencia
San Bernardo
Buen Pasto
Pampa Salamanca Norte
Unbeatable position to take immediate advantage of market conditions change
ARGENTINA. UNCONVENTIONAL ACTIVITY
Valle del Rio Grande
Vaca Muerta
Drilling phase
Corralera
Vaca Muerta
Production test
Aguada Bocarey
Vaca Muerta
Drilling phase
Aguada del Chivato
Vaca Muerta
Drilling phase
Coirón Amargo
Vaca Muerta
Production de 344 bpd
Los Toldos Este:
Vaca Muerta en
production test
Loma La Lata
Vaca Muerta
Resources 927 MMboe
Cortadera:
Vaca Muerta
Production test
Rio Neuquén
Punta Rosada
Resources 200 BCF
Huacalera:
Vaca Muerta
Multifrac well
Sierras Blancas Vaca Muerta
Tested Production 500 bbls/d
Mata Mora:
Vaca Muerta
Production test
Source: compiled by company from many sources
Lindero Atravesado
Los Molles
Resources 700 BCF
Colombia
Opportunity to Enhance Andes Portfolio
 Prolific geology with a high discovery rate.
 High potential for new discoveries with a yet to find in
the range of 30-80 Billion boe, mainly in the Llanos
basin.
 Sound macroeconomic policies and capital freedom,
democracy with a strong institutional framework.
 Openness to investment and trade (investment grade
country, candidate to OECD).
 Short & medium term horizon.
COLOMBIA. Andes portfolio, a unique potential
Most of the blocks are neighbours of the
3 biggest fields in Colombia: Rubiales,
Cusiana and Caño Limón.
VMM-8 block for unconventional, near
Shell, Exxon & Conoco blocks
COLOMBIA. Neighbours recent activity
VMM-2: Canacol Energy
drill to La Luna formation
with oil tested at 1242
bopd from the Lisima
formation. ExxonMobil
farm-in
VMM-37: ExxonMobil farm-in to the
Patriot Energy area to investigate the
Unconventional potential of the
Cretaceous La Luna formation
EL EDEN: Cepcolsa drilled a multi-zone oil and
gas discovery in the La Casona-1 well, flowing
at 1200 bopd from the Une formation
LLA-34: Geopark complete the Tua-3 well
in the Tua field that was discovered in
July 2012, with production of 1127 bopd
from the Mirador formation
PETRODORADO tests the second well in
the CPO-5 block. The Kamal-1X well
tested rates of 100 to 300 bopd from the
Upper Mirador Formation
ECOPETROL test 630 bopd of 17o API oil
in the CPO-11 block and 202 bopd of 11o
API oil from CPO-10
CONOCO.PHILLIPS farm
into the Canacol Santa
Isabel area with a shale oil
agreement
PLAYON: Ecopetrol flow 300
bopd from the Aullador-1
exploration well
GULFSANDS awarded
the LLA-50 area
LLA-23: The Canacol
Agueda 1 ST well
tested 1832 bopd from
the Lower Gacheta
formation.
LOS OCARROS:
Petroamerica complete
their Las Maracas-8 well in
the Los Ocarros block
SABANERA: Maurel & Prom test new
discovery in the Chaman-1 exploration
well some 6 kms from the main field
QUIFA: Pacific Rubiales obtain
development approval for the Cajua field.
TECPETROL test heavy
oil in the CPO-13 block
BRAZIL. UNTAPPED ONSHORE
Potiguar
POT 485 & 569
 Last on-shore significant
works on ‘70s/’80s,
before the offshore
discoveries.
 Northeast basins with
facilities, pipelines and
refineries
 Very demanded market.
SEAL T 30, 31 & 62
REC 75 & 76
 JV with local Imetame to
joint explore 7 blocks in
northeastern basins of
Potiguar, Sergipe and
Reconcavo
PARAGUAY. Unconventional Potential
Repatriación Block has the San
Alfredo Group with high
unconventional potential
Adjacent block to
others recently
acquired by
CNPC & YPF
(Fuente EIA &
Diamond Star)
Sources
TCF
8,1
Partnership: Andes 100 %
Basin: ChacoParaná
Block Surface: 497,920 acres or 2.015Km2
Existing data: Seismic lines 2D
ANDES PRODUCTION POTENTIAL
bbl/d (end of year)
20.000
Additional Shale Development
18.000
16.000
14.000
12.000
10.000
Additional Conv & tight expl&dev.
8.000
6.000
4.000
Base case
2.000
0
2012
2013
2014
2015
2016
WHY TO INVEST IN ANDES
High Quality assets, with 600 MMboe resource base.
70% success in exploration (vs 20%/25% on industry average).
Potential to profitably multiply production from present 1,700
bbl/d with current assets.
Work program of 10 wells at least, for the next 12 months with
very low financial exposure.
Risk diversified in 4 countries, 10 on-shore low risk basins,
participation in 46 blocks.
Low economic break-even point.
Andes Energia Plc
Andes Energia Argentina
16 Dover St. 3rd Floor
London - W1S 4LR
United Kingdom
+44 207 495 5326
Carranza 1441
Buenos Aires - C1425CWB
Argentina
+54 11 4779 4052
Nominated Adviser and Broker
Westhouse
One Angel Court
London EC2R 7HJ
United Kingdom
Auditor and Reporting
Accountants
Nexia Smith & Williamson
25 Moorgate
London EC2R 6AY
United Kingdom
Reporting Petroleum Engineers
Oilfield Production Consultants ltd
1-2 Apollo Studios,
Charlton Kings Road
London NW5 2SB
United Kingdom
Solicitors
Nabarro
Financial Public Relations
Buchanan
Lacon House
84 Theobald’s Road
London WC1X 8RW
United Kingdom
107 Cheapside,
London, EC2V 6DN
United Kingdom
Thank you
for your attention.
Alejandro Jotayan, CEO Andes Energia
Email: [email protected]