Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

June 28, 2011 19:36 ET

Americas Petrogas Updates Drilling on Huacalera and Peru Phosphates

CALGARY, ALBERTA--(Marketwire - June 28, 2011) - Americas Petrogas Inc. (TSX VENTURE:BOE) and its subsidiaries (collectively "Americas" or the "Company") (TSXV: BOE) announce an update on recent developments:

Huacalera Drilling

In April 2011, the Company announced the initiation of drilling of the first deep vertical shale gas well on the Huacalera block in the Neuquen Basin of Argentina. The well is programmed for total depth of 4,200 meters (approximately 13,800 feet) and is currently at approximately 3,900 meters (12,800 feet). The Company anticipates that total depth will be reached in early to mid July.

Drilling operations are being conducted by Apache Argentina, the Company's partner and the operator in the the Huacalera block. The well, Hua.x-1, has the primary objective to test the Late Jurassic Vaca Muerta shale formation, a thick, rich source rock that offers the potential for unconventional shale gas. This vertical well is expected to provide a significant quantity and quality of information relating to Vaca Muerta shale and other potential reservoirs.

The well is also designed to penetrate the stacked Lower Cretaceous formations including the Mulichinco, Quintuco and Jurassic Tordillo formations. In nearby areas, both the Mulichinco and Tordillo are significant hydrocarbon producing zones from conventional reservoirs.

The Huacalera block covers 249,943 acres (equivalent to 390 sections or almost 11 Townships, or 1,011 square kilometers) and is located in the western region of Argentina's Neuquen Basin.

Phosphates Drilling

In February 2011, the Company announced the beginning of an exploratory drilling program in Bayovar, Peru for phosphates, separate and distinct from its existing potash brine project. The drilling program was recently completed. It involved 15 boreholes varying in depth from 52 to 99 meters, resulting in an accumulated total depth of approximately 1,150 meters (3,800 feet). The Company is in the process of retaining an independent consulting company with a qualified person under National Instrument 43-101.

The phosphates drilling occurred in the southern-most block of the Company's Bayovar concession; whereas the potash brine project is located in the northern portion of the Bayovar concession. The southern-most block is 16,837 acres or 68 square kilometers in size and is located a few kilometers to the north-east of the open-pit surface phosphate mine which was put into production in August 2010 by Vale S.A., a Brazilian mining company.

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 oil and gas interests in 16 blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com

About Vaca Muerta Shales

The Vaca Muerta Shale is one of two principal source rocks in the Neuquen Basin of Argentina. The shale is late Jurassic-early Cretaceous in age, covers an area of approximately 8500 square miles, varies in depth between 5,500 to 14,000 feet and in places is up to 2,000 feet in thickness.

The Vaca Muerta characteristics are similar to shale reservoirs such as the Eagle Ford, Haynesville and Horn River in North America which have so far resulted in discoveries of both shale gas and shale oil. The shale has recently become the focus for many of the important shale gas players in North America, including Apache, Exxon Mobil, Total as well as YPF in Argentina.

About GrowMax Agri Corp.

GrowMax Agri Corp., a subsidiary of Americas Petrogas Inc., is developing a surface potash (KCl or Muriate of Potash) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Additional mineral potential includes Phosphate, Bromine and others. For more information about GrowMax Agri Corp., please visit www.growmaxagricorp.com

Forward Looking Statements

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 the total depth and timing of reaching total depth, formations to be tested and intersected by the Huacalera well, the quantity and quality of information to be obtained from the drilling of the well, oil and gas reserves, conventional and unconventional resources, the area, location and depth of Vaca Muerta shales, 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 THE RELEASE.

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