Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

June 01, 2009 15:29 ET

Americas Petrogas Announces Q1 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - June 1, 2009) -

March 31, 2009 Financial and Operating Highlights

Americas Petrogas Inc. ("Americas" or the "Company") (TSX VENTURE:BOE) announces its financial results for the period ended March 31, 2009. Copies of the Company's consolidated financial statements for the period ended March 31, 2009 and the related Management's Discussion and Analysis ("MD&A") for the quarter have been filed under the Company's profile at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.



Results

For the three months ended March 31
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2009 2008
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Revenue (interest income only) $21,016 $102,747
Net Loss $1,501,570 $339,553
Loss per share, basic and diluted $0.016 $0.005
Cash flow used in operations ($752,524) ($193,453)
Capital expenditures on property
and equipment ($1,326,886) ($1,624,833)


March 31, 2009 December 31, 2008
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Cash and cash equivalents $5,509,653 $7,701,196
Working capital $4,755,572 $6,525,699
Total assets $47,538,242 $48,829,011
Long-term debt Zero Zero
Total shareholders' equity $46,506,637 $47,216,385


Review of Q1 2009

The Company reported a net loss of $1,501,570 or $0.016 per share for the three months ended March 31, 2009 compared to a net loss of $339,553 or $0.005 per share for the same period in 2008. The increase in net loss can be primarily attributed to: (a) the expense associated with extending the expiry date of the Company's various shareholder warrants by seven months; (b) a foreign exchange loss associated with holding Canadian dollars while the U.S. dollar (Americas' functional currency) strengthened against the Canadian dollar (Americas' reporting currency); and (c) increased general and administrative expenses.

From a cash flow perspective, during the three months ended March 31, 2009, the Company spent approximately $1.4 million (2008 - $1.7 million) on investing activities, including $1.3 million on property and equipment. The majority of those expenditures were attributable to further costs associated with seismic data interpretation on Totoral-Yerba Buena and Los Toldos II, property access and retention costs on its various Argentinean properties and continuing investment in the Bayovar potash project. With respect to the Bayovar potash project, the Company has completed, in the latter part of 2008 and into 2009, a considerable amount of field work and analysis of historical geological and engineering reports as well as historical feasibility studies prepared between 1962 and 1986. Additional field work is currently being undertaken by the Company's US and Peru based consultants. In addition, the Company's German consultants have been retained to prepare a preliminary brine resources assessment study.

The Company's balance sheet at March 31, 2009, compared to December 31, 2008, reflects: (a) a decrease in cash due to ongoing spending on general and administrative expenses along with expenditures on property and equipment (including payment of current liabilities); and (b) a decline in shareholders' equity due to the net loss for the period, offset by an increase in the value assigned to warrants due to the aforementioned extension of the expiry date by seven months and by a favorable foreign currency translation adjustment.

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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

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