Americas Petrogas Inc.

Americas Petrogas Inc.

December 08, 2014 09:00 ET

Americas Petrogas Provides Update on Drilling at Medanito Sur

CALGARY, ALBERTA--(Marketwired - Dec. 8, 2014) - Americas Petrogas Inc. (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") announces that it has completed the first well, ECE.a-5, of its four-well drilling program on Medanito Sur. The well was completed in the Cuyo Formation without hydraulic stimulation. During the initial test the well produced, by natural free flow, an estimated rate of 232 bopd of 33 degree API light crude on a 2-inch open choke with no wellhead pressure. No decline was observed during the 24-hour test. The flow test result was the initial well productivity test and is not necessarily indicative of long-term production potential or capability.

After the initial test, the well was immediately equipped with a beam pumping unit and permanently tied into Company-owned production facilities. Production was started with the well on pumping and intermittent natural flow. During the initial days after being permanently tied in, the well produced 300 bopd, 100% crude, without rate decline. The ECE.a-5 is an appraisal well located on the El Calden Este area of Medanito Sur, which is a conventional block located in the Eastern part of the Neuquen Basin in Argentina. No pressure transient analysis or well test interpretation has been carried out on this well.

The second well (EJ.a-18) and the third well (ECE.a-33) of the four-well program are in the process of being completed. During drilling of the second well and third well, both had oil and gas shows from good quality sand formations. Drilling of the fourth well (ECE.a-19) is in process.

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 testing, drilling, production and potential growth thereof, should all be viewed as forward looking statements. Though no pressure decline was observed during the test period, pressure is expected to decline over time and the decline could be significant. The flow test results are preliminary and not necessarily indicative of long-term production potential or capability.

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.


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