Wednesday, June 6, 2012

Americas Petrogas Provides Update of Argentina Operations

Americas Petrogas Inc.

 

 

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - Americas Petrogas Inc. (TSX VENTURE: BOE) ("Americas Petrogas" or the "Company") announces that it continues to make significant progress on its exploration and development activities in Argentina. The Company has embarked on an aggressive drilling programme in both its eastern and western properties, concentrating on the established producing pre-Cuyo and Tordillo formations in Medanito Sur and Rinconada Norte as well as the prospective Vaca Muerta Shale oil and gas and other tight reservoirs in its western properties -- Los Toldos I, Los Toldos II, Huacalera, Loma Ranqueles, Totoral, Yerba Buena and Bajada Colorada.


Conventional


The current drilling campaign on Medanito Sur targets conventional hydrocarbons in the Eastern part of the Neuquen Basin in Argentina. Since obtaining the exploitation permit in March 2012, the Company has drilled numerous new wells in addition to the wells drilled earlier in 2012.


The drilling on Medanito Sur is ongoing and there have been notable successes which are currently producing or will be put on production in the near term. In summary, since the beginning of 2012 until the current date, the Company has drilled nine wells.

 

(a) Three wells have been drilled, tested, completed and are currently on production as follows(1):

 

1.  EJ.a-6: Appraisal well on El Jabali Field. Tested 182 barrels of oil per

    day (bopd) from the Tordillo Formation after frac. Currently on

    production.

2.  EJ-7: Development well on El Jabali Field. Tested 421 bopd from the

    Tordillo Formation without frac. Currently on production.

3.  EC-6: Development well on El Calden Field. Tested 163 bopd with water

    from the PreCuyo Formation after frac. Currently on production.

 

(b) The Company has drilled four additional wells as follows(1):

 

4.  EV.x-1: Exploration well to the north of El Jabali field. Tested 91 bopd

    with water; oil kept increasing from the Tordillo Formation after frac.

    Well is expected to be put on production in June.

5.  EC.x-3: Exploration well west of El Calden Field. Currently testing the

    Pre-Cuyo Formation.

6.  MCO.x-1: Exploration well targeting the PreCuyo Formation. Well drilled

    and awaiting completion rig.

7.  EC-7: Development well in El Calden field. Currently drilling.

 

(1) The test results are not necessarily indicative of long-term production potential or capability.

In addition, the exploration wells, PRN x-2 and EJS.x-1, drilled in early January, were not commercial; however these wells have provided valuable geological information for future drilling activities and they may be used in future as potential injectors for a waterflood.

 

The Company continues drilling additional wells on Medanito Sur and plans more drilling on Rinconada Norte later in 2012.


The objective for 2012-2013 is a total of up to 30 appraisal, development and exploration wells for Medanito Sur and Rinconada Norte combined. The total volume of production is partially restrained by storage and neighboring facilities. To manage the future additional production, the Company is expanding its own facilities to be able to handle up to approximately 6,300 bopd of oil by the fourth quarter of 2012.

 

Unconventional Vaca Muerta Shale Wells

 

The Huacalera well, operated by Apache Energy, is undergoing long-term production testing.

 

From the Los Toldos Este well, operated by the Company in conjunction with our joint venture partner, ExxonMobil, vertical and sidewall cores as well as cuttings and well logs continue to be analysed in labs in the United States. The results will determine priority zones for testing the Vaca Muerta Shale and other potential reservoirs.

 

In the Totoral block, the first Exploratory well is planned to drill in June 2012. By now, the drill site and access roads are complete and all permits are in order. It is expected that within the next two weeks, the rig will start moving into the location to drill the La Hoya x-1 well, targeting the Vaca Muerta shale in Totoral.

 

Mr. Barclay Hambrook, President & CEO, stated, "We are pleased that the execution of our conventional drilling program has resulted in early success. This has required us to fast-track the expansion of our company-owned oil facilities. As well, we are preparing to drill additional unconventional wells with Vaca Muerta shale as the primary target. These wells include those to be drilled on our 90%-owned Totoral block as well as those with our joint venture partner, ExxonMobil, on our Los Toldos blocks.

 

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) contained herein regarding future drilling and exploration, future production and potential growth thereof, expansion of production facilities and the timing thereof 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.

 

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 THIS RELEASE.

 

 

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

 

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