Company History

Petro Andina Resources was founded in Canada in January 2003 as a highly focused, ground level entry, single country international company. Argentina was selected due to its highly prospective basins, US dollar pricing, and large, long tenure concessions. What began as a partnership with a vision in 2003 has quickly advanced into a full development of a 628,000 acre world class asset position in South America and the Caribbean. In four short years, Petro Andina has grown into the seventh largest operator of oil production in Argentina.

2004

Petro Andina acquired Venoco Patagonia, Ltd. in March 2004 which brought the Argentina assets previously assembled by Unocal, as well as qualification as a registered Operator in the country. During 2004, the Company focused on the eastern margin of the Neuquén Basin and the program was guided by the Company's strategic principles which have been consistent from the outset:

Assemble a proven team;
Partner with local players;
Apply new technology and execute quickly;
Achieve rapid growth and low finding & development costs.

The Company’s initial capital program conducted in the second half of 2004 was successful in many ways – it convinced partners Repsol-YPF and Petrobras that Petro Andina had identified a new commercial resource and the Company demonstrated that the team had the capability to execute a program in a remote area while maintaining good cost control.

February 26th	Repsol-YPF temporarily assumes operatorship of the CNQ-7/A Exploration Concession (CNQ-7/A) and spuds Pampa Verde x-1 to satisfy the work commitment on the block prior to Petro Andina closing the acquisition of Venoco Patagonia Ltd. (VPL). Well finds low rate oil in the Tordillo Group.
March 13th	Petro Andina closes acquisition of VPL.
March 19th	First Operating Committee Meeting for CNQ-7/A; plans for seismic and drilling activity for H2 2004 presented.
June	Financing closes for proceeds of CAN$5.5m million to fund initial work on CNQ-7/A.
September 16th	First Petro Andina operated activity in CNQ-7/A, testing of 20-year-old well offsetting a small structure at Jagüel Casa de Piedra (JCP). JCP a-6 swabs 150 barrels of oil per day. Petro Andina conducts 200 km2 3D seismic program and drills three successful wells: JCP-7, JCP-8 and tests a new structure at El Corcobo Norte (ECN) with ECN-1. Results prove that there is a viable heavy oil play on the northeast flank of the Neuquén Basin.
December 21st	Financing closes for proceeds of CAN$36.0 million.

2005

January	Continuous production operations commence. Recruitment begins to staff for growing capital program.
July	Continuous drilling operations begin.
November	Waterflood operations commence at JCP pilot project. ECN-2 discovers large stratigraphic trap in Lower Centenario formation. ECN has proven to be the largest onshore discovery of oil in Argentina since 1992.

2006

February	ECN-2 is offset by three successful delineation wells.
March	Petro Andina commits to major facilities for ECN development.
July	Second rig for continuous drilling operations is added.
October	Financing raises proceeds of CAN$41.1 million to fund ECN development and ongoing exploration.
November	Puesto Pinto (PP) and Cerro Huanul South (CoHS) accumulations discovered.

2007

January	Third rig added for continuous drilling operations.
March	Engineering commences for CoHS thermal recovery pilot.
April	Gobernador Ayala III Exploration Concession (GA III) is awarded to Petro Andina by Province of La Pampa. Injection commences in initial waterflood pilot pattern at ECN.
May 23rd	Petro Andina commences trading on TSX after IPO raising gross proceeds of CAN$60.3 million.
July	Fourth rig is added for continuous drilling operations and the El Renegado (ER) wells discover an extension of ECN onto the GA III Concession. Petro Andina assumes operatorship of the CNQ-7 Exploration Concession (CNQ-7) from Petrobras.
October	Steam injection commences at CoHS thermal pilot.
November	Fifth rig is added for continuous drilling operations.
December	Farmin is signed with Pampetrol for the Gobernador Ayala I Exploration Concession (GA I) The Gobernador Ayala Este (GAE-1) and GAE-2 wells discover a further extension of ECN to the southeast along the GA III Concession.

2008

January	Joint Venture Agreement signed with Voyager Energy Ltd. to acquire a 50 percent operated working interest in two onshore exploration blocks in Trinidad and Tobago.
March	Financing raises proceeds of $35.9 million to fund the 2008 capital expenditure program.
June	Completion of 82 kilometer crude oil sales pipeline from ECN facilities to Puesto Hernández sales point.
September	Startup of sales pipeline, now transporting all sales specification oil volumes from ECN and JCP facilities to Puesto Hernández.
September	Petro Andina awarded Exploitation Concessions covering ER and GAE fields in GA III Concession and PP field in CNQ-7/A.