Argenta Oil & Gas Inc.
TSX VENTURE : AZA

Argenta Oil & Gas Inc.

February 26, 2008 08:51 ET

Argenta Discovers Oil in LEDO x-2, First Exploration Well in Loma El Divisadero Block

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2008) -

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Argenta Oil & Gas Inc. ("Argenta") (TSX VENTURE:AZA) is pleased to announce initial results of its first exploration well on its 100% owned Loma El Divisadero property in the Neuquen Basin, Argentina.

The LEDO x-2 well was drilled to a total depth of 5,294 feet and 7 inch casing was run and cemented at 4,694 feet. The well tested 19 degrees API gravity oil from the Chorreado Member (3,451 feet) before any stimulation. The Chorreado Member (Huitrin Formation) appears in this well with 197 feet of gross thickness in three different packages of fine to very fine sandstone, log porosities average 18%, with resistivities suggesting high oil saturation. The Company is currently evaluating the size of the hydrocarbon pool by reviewing the recently shot 3D seismic and examining a number of options to improve production rates, including a sand frac. It is common local practice by offset operators to frac this type of formation in order to boost production rates.

Victor Linari, Argenta's Chief Geologist and Geophysicist stated:

"The new velocity logs taken in LEDO x-2 have led to further seismic interpretation, which suggests that the hydrocarbon accumulation in Chorreado Member in LEDO x-2 goes beyond the previously interpreted structural play and be part of a larger stratigraphic play. This is also supported by an old well reported by Repsol YPF in LEDx-3, located outside of the originally mapped prospect."

Claudio Larotonda, Argenta's President and CEO, further stated:

"We are in discussions with engineering consultants to assess the application of drilling and completion technologies typically used in this type of reservoir to boost production rates and to plan a short-term development of the discovery. Meanwhile, Argenta continues with the completion of the other three exploration wells that were cased, which is taking longer than expected mainly due to the number of potential pay zones and the complexity of the reservoirs under testing."

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 has over 300 plus years of combined local and international experience. 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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