Drilling Commenced at Pacific Rubiales' Colombia Well

Petroamerica announced the July 3, 2011 spud of the Torodoi 1-X exploration well, targeting Tertiary and Cretaceous reservoir formations in the Arauca Block situated in the Llanos Basin of Colombia. The operator on the block, Pacific Rubiales, who holds a 95% participating interest in the block, will drill the well using the Petrex 22 drilling rig and is expecting to reach a total depth of 7,198 feet (measured depth) by early August, 2011. Shortly after completion of this well, it is expected that a second well on the Arauca Block will be spudded using the same rig.

Petroamerica, pursuant to a Farm-in Agreement with Pacific Rubiales, holds a 5% participating interest in the Arauca Block, but will be fully carried by Pacific Rubiales for the costs of both this and the second well.

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