Thursday, November 29, 2012

Americas Petrogas Announces Shale Oil Discovery-- LTE.x-1 Well on Los Toldos II Block

Americas Petrogas Inc.

CALGARY, ALBERTA--(Marketwire - November 28, 2012) - Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to provide an update on its Los Toldos Este well, LTE.x-1, a vertical well that was drilled on the Los Toldos II block. The Los Toldos Este well, LTE.x-1, which completed drilling earlier in 2012, intersected the VacaMuerta formation (thickness 343 metres) as expected. The well was hydraulically stimulated with five stages in the VacaMuerta formation in September. The initial flow rate of the VacaMuerta formation, after the clean-up flow back, at depths between 2,795 to 3,065 metres was 797 barrels of oil equivalent per day (boepd) of which 694 barrels of oil per day (bopd) was high quality light sweet oil, 39.6 degrees API. The average flow rate for the initial 30 days was 309 boepd, of which there was 254 bopd. Two production flow tests were also conducted to determine the productivity of the perforated intervals. This, in addition to core and other studies, will help the broad evaluation of the future productivity and the potential of the well and the reservoir. Currently the well is shut-in for a pressure build-up test.

Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "We are excited about these initial test results of the VacaMuerta in the LTE.x-1 vertical well. These results reinforce our belief in the potential for the Los Toldos II block."

Americas Petrogas is the Operator of the Los Toldos blocks and holds a 45% working. ExxonMobil also owns a 45% working interest with the remainder held by Gas y PetroleodelNeuquen.

 

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 ExxonMobil, 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) regarding the ability of the Company to continue to test the LTE.x-1 well and/or to commercially produce or sell oil, gas or other hydrocarbons from the LTE.x-1 well (or any one of the formations contained therein), including the timing of such activities, should all be viewed as forward looking statements. The presence of hydrocarbon shows is not necessarily indicative that hydrocarbons are capable of being successfully produced in commercial quantities. There is no assurance reserves will be assigned to such hydrocarbon bearing formations. There is no assurance that future wells will be drilled on the Los Toldos blocks or that if drilled, such wells will be successful.

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 press 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, if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

Any references in this press release to test rates, flow rates, initial test or production rates, and/or early production rates are useful in confirming the presence of hydrocarbons; however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "frac" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.

Where applicable, natural gas has been converted to barrels of oil equivalent ("BOE") based on 6 Mcf:1 BOE. The BOE rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalent at the wellhead. Use of BOE in isolation may be misleading.

 

Contact Information

Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO
(403) 685-1888
inquiries@americaspetrogas.com
www.americaspetrogas.com



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