Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

March 16, 2010 09:20 ET

Americas Petrogas Announces 4th Consecutive Oil Discovery in Medanito Sur

CALGARY, ALBERTA--(Marketwire - March 16, 2010) - Americas·Petrogas·Inc.·(TSX·VENTURE:BOE)·-·

Oil Discovery

Americas Petrogas Inc. ("Americas Petrogas") is pleased to announce that its wholly owned subsidiary, Americas Petrogas Argentina S.A., has tested and completed the well El Calden XS-4. This is the 4th exploration well on its Medanito Sur block, in Neuquen basin, Argentina.

The well discovered light sweet crude oil (34 degree API) in the Pre-Cuyano formation, confirming the discovery made by the El Calden X-1 well. The well EC XS-4 has tested 220 bopd by natural flow on a 10 mm choke and will be put into production during the next couple of weeks for a long term production test.

The well also tested the Centenario shallow formations and discovered some oil and gas with water but this particular formation is not considered of commercial interest in this well. However the presence of hydrocarbons in the shallow Centenario formation is very encouraging for future exploration activities in the area.

Commenting on this new oil discovery, Mr. Güimar Vaca Coca, Americas Petrogas Argentina S.A.'s Managing Director, stated, "This is the 4th consecutive well discovering oil in what is believed to be commercial quantities in the Medanito Sur block, confirming the promising prospects and drilling opportunities of the block. I congratulate our experienced technical and management team on their success."

Investor Presentations

Americas Petrogas is updating its presentations and these will be posted on its website within 24 hours from the time of this press release.

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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