(AEN) Andes Energia

I think they must be waiting for the electricity tariff review expected in August, without it I don't think they have a 'good story' to list against. .

LR

Anyone had any joy in smoking out any news on Andina? I guess we shd collectively bombard the Andes guys with complaints. Dunno if they read this

....... referenced in the Petrobras article I posted:

http://www.nasdaq.com/article/americas-petrogas-makes-new-vaca-muerta-shale-exploration-discoverygas-and-liquids-gained-more-than-8-friday-cm234501#.UWZnbaKG2So

LR

........ to get some sensible rules in place. One good government announcement and this could fly IMHO.

http://en.mercopress.com/2013/04/10/petrobras-calls-for-clear-rules-to-foster-investment-in-shale-production-development

LR

....... and another US partner for YPF...... You'll need to translate! .

http://www.ieco.clarin.com/economia/Vaca-Muerta-Shell-descubre-YPF_0_890311031.html

LR

.......... in the Repsol/YPF dispute. Typically underhand in some ways but if it gets things moving it will be good for Andes: .

"Vaca Muerta YPF-Repsol deal on the cards

State-controlled energy firm YPF is close to securing a deal with Spanish firm Repsol to establish a jointly capitalized subsidiary with acreage in the promising Vaca Muerta area in the provinces of Neuquén and Mendoza, local media reported.
The prospective agreement would imply that legal action taken by Repsol against Argentina and YPF (after the government’s expropriation of the Spanish firm’s majority share in YPF in April 2012) and against other energy firms who had reached cooperation deals with the Argentine oil company would be dropped."

Read on at the following link:

http://www.buenosairesherald.com/article/125635/vaca-muerta-ypfrepsol-deal-on-the-cards

LR

Thanks ladder rack. Seems to have been this way for months. will file this under long haul.

........ looks like a court ruling which puts doubts on Chevron participation is behind the slump today:

http://www.diarioabierto.es/104587/la-justicia-argentina-dificulta-la-entrada-de-chevron-en-vaca-muerta

This might reverse pretty quickly so for the brave it's a buying opportunity! .

LR

Lack of interest and hence liquidity....... any significant sale volume crucifies the shareprice.

LR

This seems to be sinking faster than subject ship. Anyone know why?

...... followingt AAPG Geosciences Technology Workshop held in Buenos Aires in early December. .

http://www.aapg.org/explorer/2013/01jan/regsec0113.cfm

LR

........ at last some promotion of Andes potential appreciating asset value based on recent YPF partner developments, better late than never LOL! .

LR

Big money flowing in procession now: .

Argentina’s YPF and Bridas, 50% owned by CNOOC, to invest $1.5B in Vaca Muerta shale oil development in Argentina

http://www.greencarcongress.com/2012/12/vacamuerta-20121229.html

LR

This should surely help to transform the valuation of our Neuquen assets?

http://en.mercopress.com/2012/12/19/chevron-ypf-sign-pilot-accord-to-drill-100-wells-in-vaca-muerta-shale-deposits

Roll on 2013! .

LR

You'll probably need google to translate but I'm wondering if we could see movement here off the back of this agreement?..... Hope so! .

http://www.rionegro.com.ar/diario/a-houston-por-vaca-muerta-1032765-9544-nota.aspx

LR

Apologies again! Maybe this will connect this time

http://www.investegate.co.uk/andes-energia-plc/rns/colombia-award-of-blocks/201211260700089454R/

Apologies for broken link! Let's see if this one works?

http://www.investegate.co.uk/andes-energia-plc-(aen)/rns/colombia-award-of-blocks/201211260700089454R/

7 new blocks in Colombia has to be the start of an exciting new future. AEN's sole dependence upon Argentina & it's impulsive political uncertainty was never the healthiest set of circumstances.

http://www.investegate.co.uk/andes-energia-plc-(aen)/rns/colombia-award-of-blocks/201211260700089454R/

With no updates re 'Vaca Muerta' & 'Andina' sp still in hibernation good news here has been long overdue.

Salut

DB

....... pressure Repsol have attempted to exert

http://www.petroleumworld.com/storyt12112201.htm

Hoping that if this action gets brushed away and some work programme is confirmed we might actually see a swift reversal of fortunes here! .

LR

I missed this back in May when it was published and don't think anyone else posted it...... I'm hoping Andina are not waiting on the expected review of Tariffs next August to complete their AIM listing! .

http://www.bnamericas.com/news/electricpower/edemsas-next-tariff-increase-due-august-2013

LR

And finally we receive some facts from today's AEN RNS....but not from Andina......enjoy!

"ANDINA (Electricity business)



EDEMSA



In the first six months of 2012 EDEMSA generated EBITDA of US$9.7 million on revenues of US$95.8 million, compared to EBITDA of US$10.9 million on revenues of US$85.6 million for the corresponding period last year.



EDEMSA's results have, obviously, been impacted by the continued delays in the approval of the implementation of tariff adjustments. EDEMSA's tariffs during the period were those still based on 2008 cost values. Since the end of the period the province has approved an initial average VAD increase of 9.15% representing an effective average tariff increase of 5.5%.



During 2011, EDEMSA entered into a syndicated loan agreement for AR$144 million to facilitate the buy back and cancellation of the EDEMSA bonds then in issue and the termination of the TRS with Andes and allow EDEMSA to accelerate the implementation of work plans and provide working capital. EDEMSA has now repaid its dollar denominated debt thus significantly reducing its exposure to foreign exchange risk. Due to the deteriorating financial condition of EDEMSA, at the end of the period it failed to fulfill certain requirements of the syndicated loan. This gives the syndicate administrative agent, at the request of a majority of the lenders, by written notice, the ability to declare immediate repayment of all amounts outstanding. At the date of this announcement EDEMSA has not received such notice but has recognised the full balance due as a current liability. EDEMSA is negotiating with the financial institutions to seek modifications to the syndicated loan covenants and a waiver of non-compliance. The financial information has been prepared assuming the normal course of operations and does not include the effects of any adjustments and/or reclassifications, if any, that may be required if the above situation is not resolved in favour of EDEMSA. To date it is not possible to predict the final outcome of this process and, consequently, the financial information should be considered in light of these uncertainties. As noted above, Andes no longer has any interest in the electricity business.



HASA



Reduced rainfall and reduced water accumulation has adversely impacted the performance of Hidroeléctrica Ameghino S.A., which resulted in an EBITDA for the period of US$0.3 million on revenues of US$1.4 million compared to an EBITDA of US$1.4 million on revenues of US$2 million for the comparative period last year. However, such cycles are not unusual and since the period end the water level has been on a rising trend."

So, unless I have misread the above, the value of our Andina shares will depend upon the outcome of negotiations to refinance a debt & much increased rainfall....?!

The good news AEN sp so far unaffected so all the negatives must already be priced in & Andina shares will hopefully carry some value since they do make a profit particularly when it rains.

Salut

DB

Quite possibly. But to split the company, thereby making one third of ones shareholding 'temporarily' illiquid - and then total silence for 3 months is outrageous. Of course both things should have happened simultaneously, but for reasons best known to themselves they didn't

I wondered whether they were waiting for the Tariff reviews to come through to 'launch' on a high...... might be waiting a while yet if that's the case as last time I looked there seemed no urgency from the Argentine government to 'support' the Electricity Distribution companies even though the network was starting to creak under the strain of rising demand with no profitability for the companies to invest in upgrades. .

LR

Why has there been no communication AT ALL on Andina.
Fairly typical of the shambolic way this company behaves.
Presumably their intended listing on AIM is far from straightforward and they are trying to flog the business with no success.
Be nice to know

If you have not yet seen it: .

http://andesenergiaplc.com.ar/documents/AEN_presentacion_londres_2012_b.pdf

LR

......... seems to have unconventional potential proved up now....... all good for AEN .

http://en.mercopress.com/2012/08/31/ypf-announces-three-wells-confirm-discovery-of-new-shale-deposits

LR

Weeks of being in the doldrums then a flourish of activity.....Somebody knows something!!

Has the 'Vaca Muerta' revealed more secrets? Has there been a political detente with Repsol?
Only questions...no answers.

Am now feeling revitalised & reassured that investment here was a wise decision.

Then there's 'Andina'......yet another question?

Could well be £200k by year end!

Just passing through here and though it was funny everyone talking about 'una vaca muerta' lol.

Translated into English it means... "dead cow".

Bob.

Last we heard was on the 11th April when we were told:

"Andes is pleased to announce that it has reached agreement with the vendors to extend the option exercise and acceptance payment date to 30 June 2012"

After the delay in posting the latest presentation following the 'next week' promise I'm not surprised we've heard nothing yet but come on AEN executives, is it any wonder the SP is languishing when the newsflow is not prompt? .

LR

...... result is again encouraging for all those with Nequen acreage overlying the Vaca Muerta Formation...... Like Andes .

http://www.stockhouse.com/financialtools/sn_newsreleases.aspx?qm_symbol=V.BOE&newsid=8557946

LR

Crikey! Great read & very happy to be invested here with my current loss. As ever with many AIMS stocks...'patience' is the watchword.

If you haven't seen it yet:..... .

http://www.andesenergiaplc.com.ar/?Presentation2

LR

......to invest 35bn dollars in five years with he help from partners.

......
"Galuccio said 1,000 wells would be drilled next year - a level not reached by the company since 1996 - as the company aims to push up annual energy production by 6% each year starting this year."
.......
"Galuccio said two pilot studies would be carried out at the site next year to drill 132 shale oil wells and 14 natural gas wells with an estimated investment of 1.36 billion.
If the drills proved successful, YPF would aim to develop a “production cluster” on part of Vaca Muerta, in the Patagonian province of Neuquen.
“That could generate total production of 550 million boe. That's similar to YPF total proven reserves,” Galuccio said."
......

http://en.mercopress.com/2012/06/06/ypf-unveils-plan-to-invest-35bn-dollars-in-five-years-with-he-help-from-partners

It will be very nice if some of Andes acreage is included in these plans! .

LR

Well translated...Espagnol no es facile.

Have been in & watching AEN for several months now. Ok so I am significantly down but will continue to hold with a warm feeling of smug confidence. Vaca Muerta most likely the 'Athabasca' of S. America.

Buenas noches

DB

Bit of a dodgy translation but: .

"Vaca Muerta produced

NEUQUÉN (AN). - Vaca Muerta is producing. Loma de la Lata emerge around 6,000 barrels of shale oil per day. The rate increases but, for now, is far from what is forecast. The forward problem is the cost and lack of special equipment whose income should be flexible. To do so, authorize calls for nation to file a tax warehouse customs here. There would be given all the machinery just arrived. From the boat to Neuquén. The G & P director, Gustavo Nagel, is optimistic.

In total there are 94 wells in the province unconventional and more than half are of YPF. They are running a hundred, including some on which there are huge expectations like the EOG, associated with Oil and Gas Medanito and Neuquén Chivato drilling in Aguada. And just a few days ago, in Bajo del Toro, YPF, EOG, and G & P bingo sang an exploratory well. The action of EOG, the Exxon and Shell are followed with particular attention because these players accumulate experience. Nagel, says companies have to "share" and if you are unable to carry out the operation "must be associated," he said. In this mechanism is the key role of G & P, after the bids, retained a percentage of the areas."

http://www.rionegro.com.ar/diario/vaca-muerta-produce-894504-9574-nota.aspx

Also got to wonder if now that the dust is settling there may be more farm down news for the recently acquired assets...... YPF are certainly focused and now publically committed to taking this forward and attracting additional foreign investment (probably not from Spain . ) is a key part of the plan...... small companies with a significant 'footprint' in the region will attract a great deal of interest IMHO .

"STRATEGIC PLAN PRESENTATION YPF

Galuccio Vaca Muerta says "could solve the deficit problem" national energy
"With the exploitation of an area estimated at only 15 percent of the extension of the Vaca Muerta reservoir could solve the deficit problem facing our country," said President and CEO of YPF, Miguel Galuccio.

The mega oil and gas field unconventional Vaca Muerta, located in the Neuquen basin has the potential to "solve the deficit problem" energy in Argentina, said today the president and CEO of YPF, Miguel Galuccio. " With the exploitation of an area estimated at only 15 percent of the extension of the Vaca Muerta reservoir could solve the deficit problem facing our country, "the executive said during the presentation of a five-year strategic plan for the oil. " To do this, we need to reinvest in a first step the company profits and attract national and international investors. And put us to the forefront in the use of technology applied to oil and unconventional gas, "he said Galuccio, in a downtown hotel Buenos Aires . The Vaca Muerta area, extending from southern Mendoza and northern Neuquén has approximate area of 30,000 square kilometers and could turn Argentina into a leading player in the global oil market, in the words of President and CEO YPF. Spanish Analysts believe that this mega site became one of the main reasons why the government of Cristina Kirchner decided to move in the nationalized oil company YPF, to the detriment of the interests of the Iberian Repsol. Vaca is estimated that Life could transform Argentina into the third largest producer of unconventional hydrocarbons."

http://www.26noticias.com.ar/galuccio-dice-que-vaca-muerta-podria-solucionar-el-problema-del-deficit-energetico-nacional-153033.html

LR

Directors taking additional shares at a small discount and warrants at a premium to the current SP...... that means our interests are aligned. .

Will be interesting to see the new presentation when it is eventually posted up! .

Happy with today's news as far as it goes .

Looks like Peter Bassett at Westhouse Securities does not follow Andes too closely as he is speculating that there might be substantial future capex required while I would suggest that Andes will look for further farm in deals on new assets and might even strive to maintain only carried interests as they have already on a number of their existing blocks. .

http://www.digitallook.com/news/20147827/Andes_Energia_grabs_peer_AHI.html

LR

When you put DYOR at the end of a post the implication is that you have done some yourself.
Not much evidence of it unless you count, 'hopefully bottomed out'

http://www.oilvoice.com/n/OilVoice_Morning_Movers_Range_Resources_Tullow_Oil_and_Andes_Energia/3c4bd9461717.aspx

Back in today, great aquisition and sp has dropped away allot over the past few months so hopefully bottomed out and starting a climb back up wiht this great news

GLA and DYOR