Petro Andina Assumes Operatorship of Block CNQ-7

As a unanimous decision made by the Joint Venture partners at an Operating Committee Meeting held on June 29, 2007, Petro Andina assumed operatorship of the CNQ-7 Block in the Neuquén Basin of Argentina. Petro Andina has a 47.48 percent working interest in the 65,000-acre CNQ-7 Block. The acreage surrounds Petro Andina's Jaguel Casa de Piedra field and is contiguous with its El Corcobo Norte and Cerro Huanul Sur fields, all of which are located on the CNQ-7/A Block which is also operated by Petro Andina.

The 2007 proposed work program for the CNQ-7 Block includes the acquisition of 250 square kilometers of 3D seismic data and the drilling of two exploration wells. The budget also includes the drilling of four appraisal wells offsetting the Jaguel Casa de Piedra field.

Petro Andina's partners in the CNQ-7 Joint Venture are Repsol-YPF S.A. (30.01 percent) and Petrobras Energia S.A. (22.51 percent).