Americas Petrogas Inc.

Americas Petrogas Inc.
GrowMax AgriCorp.

GrowMax AgriCorp.

June 15, 2010 10:24 ET

Americas Petrogas Acquires Interest and Operatorship in Rinconada Norte

CALGARY, ALBERTA--(Marketwire - June 15, 2010) - Americas Petrogas Inc. ("Americas Petrogas" or "Company") (TSX VENTURE:BOE) is pleased to announce that its wholly-owned Argentinean subsidiary has entered into a farm-in agreement with a subsidiary of Petrolifera Petroleum Limited ("Petrolifera") to acquire a 65% working interest in Rinconada Norte located in La Pampa province in the Neuquen Basin of Argentina. Rinconada Norte (approximately 96 or 23,700 acres) is an exploitation development block and lies immediately south of Americas Petrogas' Medanito Sur (approximately 105 or 26,000 acres).

Dr. Easton Wren, Exploration Vice President of Americas Petrogas stated that "geologically the block is anticipated to provide a natural extension of the Company's Medanito Sur play and also partially fills in the area between Medanito Sur and the Vaca Mahuida block where the Company and its partners have recently announced a new discovery (see below). This extended acreage along the eastern edge of the Neuquen Basin provides the opportunity for a wide range of prospective horizons at relatively shallow depths. Some of these plays have begun to be confirmed by Americas Petrogas' recent drilling successes in Medanito Sur and Vaca Mahuida, in addition to existing production on Petrolifera's Rinconada Sur."

Medanito Sur, to the north of Rinconada Norte, currently produces light sweet crude from 4 wells while Vaca Mahuida, to the south of Rinconada Norte, has tested natural gas and oil from 3 wells. The Company's press release of June 1, 2010 summarizes the recent drilling successes in Vaca Mahuida where 5 out of 5 wells had hydrocarbon shows and of the five, 3 have been tested:

  1. VM-2014 well tested 1.0 MMcf of gas (166 boe) per day;

  2. Los Fenecios well tested 80 barrels of oil per day plus 1.5 MMcf of gas (250 boe) per day; and

  3. Los Griegos well tested a combined total of 5.15 MMcf of gas (858 boe) per day from three zones.

These successes help validate the Company's exploration strategy.

Americas Petrogas will be the operator in the Rinconada Norte block, which is nearby existing infrastructure that serves a market for oil and gas, and the Company has agreed to drill 3 exploratory wells by November 30, 2011, approximately 18 months from now. The estimated cost of these exploration commitments undertaken by Americas Petrogas totals US$4.0 million and funding is expected to come from the Company's working capital, which currently includes over $20 million of cash, and from operating cash flows.

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". The Company has oil and gas exploration, development and production activities and holds over 1,808,000 acres of land in Argentina's most prolific Neuquen Basin. The Company's plans for 2010 include drilling a minimum of 15 wells on its oil and gas properties. In Peru, through GrowMax Agri Corp., a subsidiary of Americas Petrogas, the Company is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company.

Information in this press release expressed in barrels of oil equivalent (boe) is determined on the basis of 1 boe to 6 thousand cubic feet (6 Mcf) of natural gas. "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as possible extensions and relationships of Rinconada Norte to Medanito Sur and Vaca Mahuida, the potential of the Vaca Mahuida block, the possibility of multiple pay zones, earning-in to Rinconada Norte, the estimated cost of the exploration commitments, prospects in the Neuquen Basin, future operating cash flows, drilling plans and development of a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar 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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