Argenta Oil & Gas Inc.
TSX VENTURE : AZA

Argenta Oil & Gas Inc.

June 08, 2009 18:04 ET

Argenta Announces Loma El Divisadero Drilling Results on First Appraisal Well

TORONTO, ONTARIO--(Marketwire - June 8, 2009) -

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Argenta Oil & Gas Inc. ("Argenta") (TSX VENTURE:AZA) announces that the first appraisal well drilled on the Company's Loma El Divisadero property tested water from Chorreado Member (Huitrin Formation).

Victor Linari, Vice President of Geology and Geophysics commented: "The LEDO e-4 well was drilled approximately 50 feet lower than expected. As a result, the whole Chorreado Member appeared in this first well below the estimated oil/water contact. From a positive perspective, this well has confirmed the oil/water contact for the Chorreado play and most importantly this well also had significantly greater permeability than encountered in the previous wells that were drilled as the well flowed more than 400 barrels of water per day which indicates that had oil been found in this well, the flow would have been much better than the Company's pre-drilling forecast."

Claudio Larotonda, President and CEO stated: "Argenta and its partner Unitec Energy SA have decided to delay the drilling of the second well to incorporate the interpretation of the oil/water contact and a steeper structure with much better permeability to determine the best drilling location for the second well. The Corporation will make a further announcement as to timing of the second well when the analysis and interpretation has been completed."

Argenta Oil & Gas is a Canadian energy resource company with oil and gas assets in the Neuquen Basin of Argentina and in Colombia's Lower Magdalena Basin. Argenta owns and operates all of its assets. For further information on Argenta Oil & Gas, please visit the Company's website at www.argentaoilandgas.com.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Argenta Oil & Gas Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Argenta Oil & Gas Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Argenta Oil & Gas Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Argenta Oil & Gas Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Argenta Oil & Gas Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

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