Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

February 16, 2012 01:45 ET

Americas Petrogas Starts Fracing and Testing of Huacalera Vertical Well

CALGARY, ALBERTA--(Marketwire - Feb. 16, 2012) -

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Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to announce that testing has commenced on the Hua.x-1 well on the Company's Huacalera Block (250,000 acres or 390 sections) located in Neuquen's active shale play corridor. The testing program will focus on the Vaca Muerta formation followed by additional testing in the Quintuco and Mulichinco zones since these additional zones of interest were also identified from the petrophysical and geochemical analyses of the cores, cuttings and log data.

As previously reported, the Hua.x-1 well was drilled and cased to a total depth of 13,450 feet. The primary target Vaca Muerta Shale Formation encountered 1,742 feet approximate gross thickness of Vaca Muerta shale and had initial indications of overpressure. There were gas shows in the Vaca Muerta Formation, the Mulichinco Formation (459 feet approximate gross thickness), the Quintuco formation (1,358 feet approximate gross thickness) and through the Tordillo Formation.

Americas Petrogas has a 39% Working Interest in this large block and is carried 100% on the Hua.x-1 well by Apache Argentina, the Company's joint venture partner and operator of the block. Apache Argentina holds a 51% working interest on the block while Gas y Petroleo del Neuquen holds 10%.

Mr. Barclay Hambrook, President and CEO, stated, "We are very pleased that fracing and testing has begun on this well that intersected such a thick Vaca Muerta interval along with the other prospective formations. We look forward to testing and further exploration on this very large and promising block. Huacalera occupies a strategic location almost midway between our five northern blocks and three large southern blocks along the active shale oil, gas and condensate corridor."

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 and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil, Apache and Gran Tierra Energy, on various blocks in 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) regarding the ability of the Company to successfully analyze the formations and intervals within formation or to successfully frac, complete, test and commercially produce or sell oil, gas or other hydrocarbons from the Hua.x-1 well (or any one of the formations contained therein), including the timing of such activities, should all be viewed as forward looking statements. The presence of gas and other hydrocarbons are not necessarily indicative that hydrocarbons are capable of being successfully produced in commercial quantities. There is no assurance reserves will be assigned to such hydrocarbon bearing formations. There is no assurance that there is a large oil/gas/condensate window/corridor covering a large area of the Neuquen Basin. There is no assurance that future wells will be drilled on the Huacalera block or any other blocks, or that if drilled, such wells will be successful.

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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