Petro Andina Reports $31.2 Million Bought Deal Equity Financing

Petro Andina Resources Inc. has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Tristone Capital Inc., Scotia Capital Inc., Wellington West Capital Markets Inc. and Blackmont Capital Inc. (the "Underwriters"), under which they have agreed to purchase for resale to the public, on a bought deal basis, 2,600,000 common shares of Petro Andina, at a price of $12.00 per common share resulting in gross proceeds of $31,200,000.

Petro Andina has also granted to the Underwriters an over-allotment option to purchase up to an additional 390,000 common shares at the offering price exercisable up to 30 days from the closing of the offering.

Proceeds from this offering will be used to fund Petro Andina's 2008 capital expenditure program and for general corporate purposes.

This transaction is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares will be offered in all provinces of Canada by way of short form prospectus. Closing is anticipated to occur on or about March 6, 2008.