Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

April 13, 2011 09:20 ET

Americas Petrogas/Apache Corporation Spud First Deep Shale Gas Well on Huacalera Block, Neuquen Basin, Argentina

CALGARY, ALBERTA--(Marketwire - April 13, 2011) -

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

Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) announces the initiation of drilling of the first deep shale gas well on the Huacalera block in the Neuquen Basin of Argentina. Drilling operations are being conducted by Apache Argentina, the Company's partner and the operator in the the Huacalera block.

The well Hua.x-1 has the primary objective to test the Late Jurassic Vaca Muerta shale formation, a thick, rich source rock that offers the potential for unconventional shale gas. The well is programmed for total depth of 4,200 meters (approximately 13,800 feet) within approximately 60 days. The well will also test stacked shallow Lower Cretaceous formations including the Mulichinco and Quintuco formations, which have seen previous gas discoveries in the block by previous operators, as well as the deeper Jurassic Tordillo formation. This vertical well is expected to provide a significant quantity and quality of information necessary to determine the key characteristics of the Vaca Muerta shale and other potential reservoirs. During the drilling process, a comprehensive formation evaluation program will be conducted to fully characterize the reservoir potential at this location. This information is vital for evaluating subsequent prospects for drilling.

In nearby areas, both the Mulichinco and Tordillo are significant hydrocarbon producing zones from conventional reservoirs. The Petrobras operated Sierra Chata Block (Cumulative production to March, 2010 is 475 BCF and 1.394 MMBO) and Total's Aguada Pichana Block (Cumulative Production March 2010: 1.587 TCF and 4.326 MMBO) are situated east and north of Huacalera, respectively.

The Huacalera block covers 249,943 acres (equivalent to 390 sections or almost 11 Townships, or 1,011 square kilometers) and is located in the western region of Argentina's Neuquen Basin.

Commenting on this event, Mr. Barclay Hambrook, President and CEO, stated, "We are very excited about the prospects for the drilling of our first deep shale gas well into the Vaca Muerta formation, particularly at this location which is favorably situated in a prospective environment for shale, as are our 9 western Neuquen blocks. Additionally, we have multiple prospective conventional and tight gas horizons in the Mulichinco, Quintuco and Tordillo formations."

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 oil and gas interests in 16 blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com

About GrowMax Agri Corp.

GrowMax Agri Corp., a subsidiary of Americas Petrogas Inc., is developing a surface potash (KCl or Muriate of Potash) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Additional mineral potential includes Phosphate, Bromine and others. The Bayovar area has gained recent attention through CVRD Vale's recent start-up of a 4 million tonne per year phosphate surface mine located just south of GrowMax's 202,000 acre concession. In addition to KCl, GrowMax has commenced exploration for phosphate. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company. For more information about GrowMax Agri Corp., please visit www.growmaxagricorp.com

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as the expectation to drill a well to a depth of 4,200 metres within 60 days, the expectation to penetrate the Mulichinco formation, the Quintuco formation, the Tordillo formation and the Vaca Muerta formation, the expectation to obtain significant quantity and quality of information from the drilling of the well, the oil and gas reserves, the development of a surface potash (and other minerals) brine reservoir and evaporite deposit, drilling for phosphates and the building of a potash and specialty fertilizers company, 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

Contact Information