CALGARY, ALBERTA, Dec. 22, 2010 (Marketwire) -- Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) is pleased to announce that its wholly-owned subsidiary, Americas Petrogas Argentina S.A., has recompleted the MS.s-1 well, to convert it from a disposal well into a producing well, with positive test results as follows:
-- Flowed 634 bopd plus an estimated 160,000 cubic feet per day of natural
gas with no water recovery and with 260 psig wellhead pressure flowing
naturally through a 10 millimeter choke;
-- Light sweet crude oil 32 degree API, from a 10 meter interval (1075 to
1085 meters) in the Precuyano formation;
-- Production test was performed without any stimulation treatment.
After the test, production facilities were installed and the well has been placed on production.
This confirmation discovery substantially increases the potential size of and augments the reserves on the El Jabali field.
Commenting on this oil discovery confirmation, Guimar Vaca Coca, Managing Director of Americas Petrogas Argentina, stated, "This is the 6th consecutive well discovering oil in Medanito Sur block, and confirms the promising prospects and the drilling opportunities of the block. I congratulate our experienced technical and management team on this exploratory success."
Americas Petrogas Argentina S.A. is the operator of the block.
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. API 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 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. The Bayovar area has gained recent attention through CVRD Vale's recent start-up of a 4 million tonne per year phosphate surface mine located just south of GrowMax's 202,000 acre concession. GrowMax plans to commence exploration for phosphate in early 2011. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company. For more information about GrowMax Agri Corp., please visit www.growmaxagricorp.com
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as the promising prospects, the drilling opportunities, the oil and gas reserves, the development of a surface potash (and other minerals) brine reservoir and evaporite deposit, drilling for phosphates and the building of a potash and specialty fertilizers company, involve 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, there is no assurance that new oil wells will be drilled, that exploration for phosphates will occur in early 2011, if at all, that apotash (and other minerals) brine reservoir and evaporite deposit will be developed, and that a potash and specialty fertilizers business will be built. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
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.
Americas Petrogas Inc.
President and CEO