Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

July 21, 2015 09:37 ET

Americas Petrogas Provides Update on Oil Plus Benefits

CALGARY, ALBERTA--(Marketwired - July 21, 2015) - Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) confirms that, pursuant to the terms of the Agreement of Purchase and Sale dated June 16, 2015 (the "Sale Agreement") between the Company and Tecpetrol International S.A. and Tecpetrol Internacional S.L. (Unipersonal) ("Tecpetrol" or the "Purchasers"), any proceeds from the Argentina Oil Plus program or any substitution thereof ("Oil Plus Benefits") collected by the Company's subsidiary, Americas Petrogas Argentina S.A. ("APASA") (net of third party collection costs, payments to partners and pre-existing entitlements by third parties to such proceeds, "Net Oil Plus Amounts") prior to the closing of the sale of the common shares of APASA to the Purchasers pursuant to the Sale Agreement (the "Closing") shall be paid to the Company as described in the Sale Agreement. From and after the Closing, the first US$4,000,000 of Net Oil Plus Amounts collected by APASA shall accrue for the benefit of the Purchasers. Thereafter, the Purchasers will pay to the Company 50% of any additional Net Oil Plus Amounts collected during the earlier of (a) eighteen (18) months following receipt of the first US$4,000,000 of Net Oil Plus Amounts set out above; and (b) twenty-four (24) months after the Closing. Net Oil Plus Amounts due to the Company after Closing shall be determined and paid on a quarterly basis. A copy of the Sale Agreement (without redaction of relevant clauses in Section 8.4) setting out the details of the allocation and payment of the Net Oil Plus Amounts between the Company and Tecpetrol has been filed on SEDAR.

As previously indicated in its Management's Discussion and Analysis for the first quarter ending March 31, 2015, Americas Petrogas, through APASA, has made application to receive approximately Cdn$21.4 million (approximately US$16.9 million) of Oil Plus Benefits, which, as of March 31, 2015, had not been recognized in the financial statements and remained to be collected.

On July 13, 2015, the Government of Argentina announced the issuance on July 6, 2015 of Decree No. 1330/2015 which acknowledges that Oil Plus related debt of US$784 million is payable to certain oil companies and which authorizes the Government of Argentina to satisfy the debt through the issuance of US dollar denominated government bonds (being BONAD 2018 and BONAR 2024) (the "Argentina Bonds"). The Government of Argentina has not yet provided details of when, or under what conditions, if any, the Argentina Bonds will be issued.

Forward Looking Information

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian 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 should be viewed as "forward-looking statements". There are "forward-looking statements" included in this press release that relate to completion of the transactions contemplated by the Sale Agreement, amounts and timing of Oil Plus Benefits, and the issuance of the Argentina Bonds. 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.

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. In particular, there is no assurance that any amount of Oil Plus Benefits will be received or that any Argentina Bonds will be issued to APASA or if such Argentina Bonds are issued, when such issuance will occur. There is no assurance that the conditions set out in the Sale Agreement, including receipt of required Shareholder and regulatory approvals, will be satisfied. There is also no assurance that the transactions contemplated by the Sale Agreement will be completed on the timelines indicated or at all. Accordingly, because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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 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 THE RELEASE.

Contact Information