Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

January 16, 2015 09:00 ET

Americas Petrogas Drills Four Shallow Wells and Increases Net Production at Medanito Sur by Nearly 100% to 1,440 bopd

CALGARY, ALBERTA--(Marketwired - Jan. 16, 2015) - Americas Petrogas Inc. (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") announces that it has put onto production the four appraisal wells which were recently drilled and completed on the Company's Medanito Sur block. Three of the wells were drilled to evaluate the extension of the development area of El Caldén Este in the Cuyo Formation and the fourth well was drilled to evaluate the northern branch of El Jabalí field in the Tordillo Formation. All four wells are currently on production equipped with beam pumping units and permanently tied into Company-owned production facilities.

Since all four new wells have been on production, average gross oil production at Medanito Sur, operated by Americas Petrogas, has been approximately 1,800 bopd (approximately 1,440 bopd net to the Company), representing a net increase of nearly 100% over the Q3 2014 average net oil production at Medanito Sur.

The Argentina regulators have set the domestic January 2015 oil price at US$77 per barrel for Medanito light crude oil, which is the type of oil produced from the Company's Medanito Sur block and Rinconada Norte block.

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 Neuquén Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and YPF, on various blocks in the shale oil and gas corridor in the Neuquén Basin, Argentina. Americas Petrogas and Indian Farmers Fertiliser Co-operative Limited (IFFCO) own GrowMax Agri Corp., a private company involved in the exploration for near-surface phosphates, potash and other minerals, and potential development of a fertilizer project in Peru.

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 future production levels and future oil prices should all be viewed as forward looking statements. Current production may not continue at the levels referenced herein for an extended time due to, among other things, natural decline that is experienced from previously drilled wells on the Medanito Sur block. There is no assurance that the Argentina regulators will not change the Argentina domestic oil price in the future.

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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