CALGARY, ALBERTA--(Marketwire - Sept. 14, 2011) - Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company"), is pleased to announce that it, along with its co-venturer, Gran Tierra Energy (NYSE Amex:GTE)(TSX:GTE), have made a new significant discovery of oil (1,023 barrels of oil equivalent per day) in the 1st of the three exploration wells on the Rinconada Norte block located in the Neuquen Basin of Argentina (Americas Petrogas Argentina S.A. is operator). The RN x-1004 well flowed a total combined test rate of approximately 944 barrels (150 m3) per day of oil and 13,360 m3 per day of gas (79 barrels of oil equivalent per day) for a total of approximately 1,023 barrels of oil equivalent per day from two intervals tested separately in the Precuyo formation. This well also flowed 43 barrels (5 m3) per day of water or a 4% water cut. From the depths of the zones tested (982-992 meters and 1022-1032 meters) and electric logs information, the Company estimates an oil column thickness of approximately 60 meters or 197 feet. The oil is 29.6 degrees API, sweet light crude similar to crude oil produced from the equivalent formation in Americas Petrogas' Medanito Sur block. This well has been completed and the service rig will now move on to the next two wells, which have already been drilled, logged and production casing has been installed. Americas Petrogas' wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., is the operator of the Rinconada Norte block, holding a 65% working interest, while Gran Tierra Energy, through its Argentina subsidiary, holds a 35% working interest.
Commenting on this most recent discovery, Mr. Guimar Vaca Coca, Managing Director of Americas Petrogas Argentina S.A., stated, "We are very excited about this new find on the first well of this three-well exploratory drilling program because of the strong production rates and possibility of significant commercial reserves. We are also optimistic about the prospects for the remaining two wells."
The Rinconada Norte block is currently under an Exploitation concession, which will allow Americas Petrogas and Gran Tierra Energy, with previous approvals from the authorities, to move ahead with development activities in the near term. The Company anticipates building test production facilities in the fourth quarter of 2011. This drilling program on Rinconada Norte represents the initial phase of Americas Petrogas' previously-announced drilling plans for 2011-2012 (see press release of June 3, 2011).
The Rinconada Norte block (approximately 96 sq. km or 37 sections) is located immediately south of and adjoins Americas Petrogas' Medanito Sur block in La Pampa Province in the eastern region of the Neuquen Basin of Argentina.
Mr. Barclay Hambrook, President CEO of Americas Petrogas, stated, "We are very pleased with this discovery and Americas Petrogas is well-funded to accelerate and expand its planned capex program in order to increase production and reserves."
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 conventional and unconventional (shale and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including Exxon Mobil, Apache and Gran Tierra Energy, on various blocks in Argentina. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown 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, statements (express or implied) contained herein regarding production of oil, gas and water from the well, column thickness, potential success on the remaining two wells, timing and speed of development/production plans, quantities of oil and gas reserves, and conventional and unconventional resources, should all be viewed as forward looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
"Barrels of oil equivalent" (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: per 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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