Interim results from Andes Energia (LON:AEN) revealed the merits of producing oil in Argentina.
Of 3,226 barrels a day of output (up from 1,700 at the same point last year) just over 1,800 are sold in Argentina where local firms enjoy government support.
As a result Andes received an average US$68.30 a barrel for its crude, well above the spot price and ahead of the US$52.10 it got for its oil output in Colombia.
Operationally, things appear to be going to plan for the London-listed firm.
A total of 20 development wells drilled on the Chachahuen licence it holds with state firm YPF, while there have been workovers on the El Manzano licence to maintain production.
A successful multi stage frack and production test was carried out on the Las Varillas x-1 exploratory well has was also completed, Andes said in its interim results statement.
The financials for the six months to June 30 showed the company generated revenues of US$32.5mln – a rise of US$12.1mln year on year – while underlying profits (EBITDA) were up 121% at US$9.5mln.
Andes has US$21.7mln in the bank. It recently raised US$9mln that allowed it to cancel US$10mln of debt.
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