Andes, JV Secure Rig, Drilling to Commence in Argentina

The Board of Andes announced that its joint venture consortium with Patagonia Oil & Gas S.A, Union Transitoria de Empresas (UTEs), has signed a drilling contract with San Antonio Internacional, a subsidiary of Pride International Inc.

Exploration drilling in the San Jorge basin will now commence in Q3 2008. This will initially focus on the Confluencia license block and the first well will be drilled to a final depth of 1,456 meters. It is anticipated that it will take 20 days to drill to final depth.

Further to the announcement on June 26, 2008, this is the first of an initial four well exploration drilling program which is expected to be completed by March 2009.

Luis Alvarez Poli, CEO of AEN, stated, "We are delighted to have secured a drilling rig from one of the most competitive operators in the region. We look forward to working closely San Antonio, which has a strong track record in Argentina."