Nearby oil discovery de-risks Andes Energia blocks in Colombia

12th Aug 2013 07:55

Latin America-focused oil and gas group Andes Energia is hoping that an oil discovery close to two of its blocks in Colombia could bode well for its own projects.Carso Group, a conglomerate controlled by billionaire Carlos Slim Domit (the son of Mexican tycoon Carlos Slim Helu), has found oil at its Jagüeyes 3432-B block and testin is in progress to find out its size and commerciality.Jagüeyes lies adjacent to Andes' LLA-49 and LLA-12 blocks, located just six kilometres from the western border of LLA-49.AIM-listed Andes said that Jagüeyes confirmed the high prospectively of its Colombian blocks. It has identified a number of potential resource targets at its two blocks and is currently progressing the environmental permit application process for new activities in the projects."We are very encouraged by this confirmation of the potential of our Colombian blocks and the potential value this discovery brings to the north eastern part of the Llanos basin, de-risking our exploration portfolio significantly," said Andes Chief Executive Alejandro Jotayan."This news together with several other recently announced oil discoveries near Andes's blocks further consolidates the considerable resource potential of our blocks in Colombia."The stock was up 10.53% at 21p in early trading on Monday.BC