Argenta Oil & Gas Inc.

Argenta Oil & Gas Inc.

April 22, 2008 09:11 ET

Argenta Appoints New Director, Adds Consultants and Updates on Oil Discovery

TORONTO, ONTARIO--(Marketwire - April 22, 2008) -


Argenta Oil & Gas Inc. ("Argenta") (TSX VENTURE:AZA) is pleased to announce the appointment of Aries Barreto to the Board of Directors. Mr. Barreto fills a vacancy on the Board created by the resignation of John Cullen, a founding Director of the Company. The Company wishes to thank Mr. Cullen for his contribution to Argenta.

Mr. Barreto has over 40 years of international experience as a senior executive in the oil, gas and petrochemicals business particularly in South America. Mr. Barreto is currently President of AMB Minerals & Energy Inc., a Toronto based consulting company. During his distinguished career, Mr. Barreto has held many senior executive positions including, among others, that of Deputy-Chairman of Petroleos de Venezuela (PDVSA), Chairman of CITGO Petroleum Corporation (USA), Co-Chairman of Ruhr Oel (Germany) and Nynas Petroleum (Sweden), Chairman of PDVSA Finance, President of Pequiven SA (Venezuela) and President of Intevep SA.

Mr. Barreto has significant experience in corporate planning and finance gained from his experience operating refining and petrochemicals businesses worldwide, and directing R&D and engineering. He holds graduate and post-graduate degrees in chemical engineering and oil and gas economics from Bombay University (India), Instituto Quimico de Sarria (Spain) and Loughborough University (England).

Claudio Larotonda, Argenta's President & CEO commented,

"We are very pleased to have Mr. Barreto, a highly experienced and internationally-recognized oil and gas executive join Argenta's Board of Directors and we look forward to the significant contribution he will make as a Director."

Argenta is also pleased to report that it has retained Carlos Gilardone, Managing Director of FDC de Argentina S.R.L. (FDC), a consulting company with broad technical expertise in reservoir and production engineering in Argentina and the Americas. FDC has participated in the field developments of Repsol YPF and Petro Andina Resources assets adjacent to Argenta's Loma Divisadero property.

Argenta has also retained Leandro Carbone, a petroleum engineer with extensive technical experience in operations. Mr. Carbone worked for more than 13 years for Total Petroleum in Argentina and abroad.

On the operational side, lab results on oil samples taken from the recent discovery at LEDO x-2 confirmed 24 degrees API (previously reported as 19 degrees API measured at the well site).

The second well (ADCx-1) tested gas from the same reservoir (Chorreado Member), supporting Management's view that this extends the play concept to a potentially larger field than originally expected. These new developments led Argenta's management to return to LEDO x-2 to stimulate the Chorreado reservoir. Argenta plans to reperforate and frac several intervals within the 197 feet of gross pay. This operation commenced some days ago and is expected to be completed in the near future.

Upon completion, the rig will move to the third well where the La Tosca Member (Huitrin Formation) and Rayoso Formation appear prospective for production. Carlos Gilardone pointed out:

"The data acquired at LEDO x-2 is confirming formation damage during drilling and indicates a high sensitivity of most of the formations drilled to drilling fluids. This strongly suggests that there is a good chance of turning many of the already tested zones with non-conclusive tests to conclusive tests through proper stimulation. The Company will evaluate a workover campaign to prove this in the near future."

The two-month delay in operations was caused partially by the complexity of the reservoirs tested and also by the poor performance of the completion rig. Argenta cancelled the previous contract and has contracted a new rig. Claudio Larotonda, stated:

"The lack of available rigs forced us to continue until we were able to get a new rig, however close to two months of operational delays resulted. Now, we expect to move quickly and define our exploration results as soon as possible."

In other news, Argenta has awarded 930,000 options to a director, consultants and employees. The options are exercisable at $0.50 for a period of five years.

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. The Company is focusing on low risk development for growth and is currently pursuing a number of opportunities. Argenta's world class management team combines local and international experience.

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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