Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

February 23, 2012 11:00 ET

Americas Petrogas Completes $60 Million Bought-Deal Financing, Including Underwriters' Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - Feb. 23, 2012) -

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Americas Petrogas Inc. (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to announce that it has closed its previously-announced equity financing by way of private placement on a bought-deal basis (the "Bought-Deal Offering") by completing the sale of 17,160,000 common shares of the Company (the "Common Shares") (including 2,860,000 Common Shares issued pursuant to the exercise in full of the over-allotment option granted to the Underwriters) at a price of $3.50 per Common Share, for gross proceeds of $60,060,000.

Barclay Hambrook, President & CEO, stated, "We are delighted to have closed this over-subscribed financing with this underwriting syndicate." Mr. Hambrook went on to say, "These additional funds will allow us to accelerate our exploration and development activities, particularly on our nine blocks located in the Neuquen Basin's Western corridor which are prospective for shale oil, shale gas and condensate in the Vaca Muerta, Los Molles and Agrio shale formations."

The Bought-Deal Offering was completed through a syndicate of underwriters co-led by TD Securities Inc. and Cormark Securities Inc. and including Mackie Research Capital Corporation and Casimir Capital Ltd. (collectively, the "Underwriters"). The Underwriters were paid a cash commission equal to 6% of the gross proceeds of the Bought-Deal Offering.

Further, it is anticipated that the Company will be closing shortly its previously-announced non-brokered private placement (the "Non-Brokered Offering") of up to 3,057,000 Common Shares at a price of $3.50 per Common Share to Kisan International Trading FZE, a subsidiary of Indian Farmers Fertiliser Cooperative Limited, for aggregate gross proceeds of up to $10,699,500.

The net proceeds received from the Bought-Deal Offering, and the proceeds which will be received from the Non-Brokered Offering, will be used by the Corporation to fund ongoing exploration and development of the Company's shale oil & gas properties and conventional oil & gas properties, and for general corporate purposes.

The securities issued under the Bought-Deal Offering and the securities which will be issued under the Non-Brokered Offering, are, or will be, subject to a four month hold period in accordance with applicable Canadian securities laws.

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 oil and gas and tight sands oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in the shale oil and gas corridor in the Neuquen Basin, 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 use of proceeds and the expected closing date of the Non-Brokered Offering 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.

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