Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

January 26, 2012 09:53 ET

Americas Petrogas Announces Record Daily Production in Argentina

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") announces that it continues to make significant progress on two blocks, Medanito Sur and Rinconada Norte, which target conventional hydrocarbons in the Eastern part of the Neuquen Basin in Argentina.

Americas Petrogas has recently drilled, tested and completed two wells with favorable results:

  1. Exploratory well RN.x-1008, in the Rinconada Norte block, tested 29 degree API light oil from three intervals (gross total of 18 meters) for a total of 408 barrels (65 cubic meters) of oil per day (bopd) with 10% water. The well has been equipped with a beam pumping unit and has recently been put into production. This well opens a large, new area for further appraisal and development.
  1. Appraisal well EJ.a-3 (El Jabali a-3), in the Medanito Sur block, tested, from one 10-metre interval, 448 bopd (71 cubic meters) of 33 degree API light oil with 1% water by natural flow on a 12 millimeter choke with a gas/oil ratio of 58 m3/m3. This well has recently been put into production.

In addition, Americas Petrogas has drilled and cased the following two wells on Medanito Sur block:

  1. Exploratory well EJS.x-1 (El Jabalí Sur x-1) which is undergoing testing and completion.
  1. Development well EJ-7 (El Jabalí 7) has been drilled to depth and awaits testing and completion.

A fifth well, Exploratory well PRN.x-2 (Puesto Ramos Norte x-2) on Medanito Sur block was uneconomic and is expected to be converted into a water disposal well.

With respect to production, the Company is currently producing from Medanito Sur and Rinconada Norte for a combined total gross production of approximately 2,150 bopd and net production to Americas Petrogas of approximately 1,900 bopd.

The Company continues to drill and complete additional wells on the two target blocks.

Americas Petrogas' wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., is the operator of the Rinconada Norte block, holding a 65% working interest, while Gran Tierra Energy (NYSE Amex: GTE; TSX: GTE), through its Argentina subsidiary, holds a 35% working interest.

Mr. Barclay Hambrook, President & CEO, stated, "Existing daily production from our conventional blocks is ahead of schedule for 2012 and with the continued drilling on Medanito Sur and Rinconada Norte, we will consider options for expanding our facilities in the near future."

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has conventional and unconventional (shale and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil, Apache and Gran Tierra Energy, on various blocks in Argentina. For more information about Americas Petrogas, please visit www.americaspetrogas.com

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown 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.

In particular, statements (express or implied) contained herein regarding the quality and percentage of oil/water, future drilling, testing and completion on the two blocks, future production and growth thereof, expected conversion of PRN.x-2 to a water disposal well and future expansion of production facilities should all be viewed as forward looking statements.

There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

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 THIS RELEASE.

Contact Information