Operations Update

24 April 2017

Andalas Energy and Power Plc

(‘Andalas’, or the ‘Company’)

Operations Update

Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company (AIM: ADL), is pleased to provide an update on its activities with Pertamina, Indonesia’s national oil company, including the identification of a further two gas fields suitable for wellhead IPP development.  This is in line with the Company’s strategy to develop a portfolio of wellhead independent power projects (‘IPPs’) totalling between 250MW to 500MW of installed capacity fired with gas from existing fields.

• Two new project locations have been identified with Pertamina.

• Both projects are located within the Company’s target area of Central Sumatra where there is a significant inventory of gas fields with wellhead IPP potential.

• Detailed evaluation of each project’s suitability to feed a future power project of sufficient size will commence this week with Pertamina’s sub-surface team.

• Following this a feasibility study will be undertaken at each new project.

• Joint review now being undertaken of the undeveloped gas fields in Pertamina’s inventory as well as other operators.

Andalas CEO, David Whitby, said “We were extremely pleased by the outcome of our recent workshop and the subsequent meetings between Andalas and Pertamina.  Pertamina was represented at the workshop by over 20 people from across their organisation.  Andalas shared its experience on the optimal way to monetize marginal gas fields through wellhead IPPs and Pertamina presented a sampling of its inventory of gas assets. The workshop continued to build on the already solid foundation of mutual cooperation and respect between our two organisations.

“The scalability of our gas-to-power offering in partnership with Pertamina is clear.  In addition to the initial project, we have identified two additional fields within Pertamina’s unrivalled inventory of gas assets.  All of this has been achieved within eight months of signing our partnership agreement with Pertamina and we look forward to updating shareholders as we continue to progress our cooperation with Pertamina.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR).  Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

**ENDS**

For further information, please contact:

David Whitby	Andalas Energy and Power Plc	Tel: [phone]
Sarah Wharry Craig Francis	Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker)	Tel: [phone]
Jon Belliss	Beaufort Securities Limited (Joint Broker)	Tel: [phone]
Frank Buhagiar Susie Geliher	St Brides Partners Limited	Tel: [phone]