Argenta Oil & Gas Inc.
TSX VENTURE : AZA

Argenta Oil & Gas Inc.

May 08, 2008 10:29 ET

Argenta Confirms Commercial Flow of Oil and Adds Gas Discovery in Loma El Divisadero

TORONTO, ONTARIO--(Marketwire - May 8, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Argenta Oil & Gas Inc. ("Argenta") (TSX VENTURE:AZA) is pleased to announce the successful test of the Chorreado reservoir in well LEDO x-2. Test results and log analysis in this well indicate the presence of an oil reservoir with net pay of approximately 52 feet and a gas cap with net pay of approximately 49 feet for Chorreado Member.

The results substantiate the Company's most likely estimates from interpretation of the size of the prospect from 3D seismic. This is the latest Chorreado formation discovery in the Neuquen Basin in Argentina and could hold significant reserves. Details of the technical features of the discovery are posted on the Company's website at www.argentaoilandgas.com. The Company is currently in the process of putting the LEDO x-2 well into commercial production.

Carlos Gilardone, Argenta's reservoir engineering consultant said:

"The hydraulic frac performed to overcome the formation damage incurred while drilling increased production rates. Post-stimulation LEDO x-2 well is naturally flowing on average 30 bopd and oil flow is increasing from the Chorreado Member (Huitrin Formation) at a depth of 3,451 feet. The Company has decided to stop testing and put the well into production. According to initial results and after reviewing other reservoir data, we anticipate that LEDO x-2 will produce at approximately 90 barrels of crude oil per day with a pumping unit."

Victor Linari, Chief Geologist and Geophysicist said:

"The test results confirm our assumption regarding the effect of formation damage during drilling. This damage affected not only Chorreado Member but also three other formations - the Rayoso, Mulichinco and Neuquen Group, which had significant oil traces during testing and are typically productive in nearby fields. These formations will be re-tested to confirm productivity."

Readers are cautioned that statements in this release are based on review by Management and Consultants and as such are not to be considered to be NI 51-101 compliant.

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.

This press release was prepared by Argenta Oil & Gas Inc. which accepts the responsibility as to its accuracy.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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