Apache Argentina Reaches TD at Huacalera Shale Well

Americas Petrogas announced that the Hua.x-1 well on the Company's Huacalera Block, operated by the Company's joint venture partner, Apache Argentina, has reached total depth (TD) of 4100 meters (13,450 feet). A full suite of logs, including image logs, has been run and production casing has been successfully set all the way to TD.

The primary target Vaca Muerta Shale Formation (531 meters or 1,742 feet approximate gross thickness) has initial indications of overpressure. Gas shows were encountered in the Mulichinco Formation (140 meters or 459 feet approximate gross thickness), the Quintuco formation (414 meters or 1,358 feet approximate gross thickness) through the Vaca Muerta Formation and into the Tordillo Formation, and these results were reported to the appropriate government authorities.

The comprehensive suite of logs and mud log information will now be integrated and interpreted. The vertical cores, sidewall cores and rock cuttings have been sent to 3 different laboratories for analysis to measure the petrophysical and geochemical characteristics of the samples, both shales and sands. The results, which are expected during 3Q-2011, will provide fracking and testing options for tight sands and shale gas or oil reservoirs.

This is the first Vaca Muerta Shale gas pilot exploration well drilled in the 250,000 acre (390 sections) Huacalera block which lies along the emerging shale gas and shale oil play corridor in the western part of the Neuquen Basin, Argentina. As previously stated, Americas Petrogas has a 39% Working Interest in this large block and is carried 100% on the Hua.x-1 well by Apache.

Commenting on the drilling of this well, Mr. Barclay Hambrook, President and CEO, stated, "We are very pleased that the well has been drilled and cased successfully and, with Apache, we are looking forward to the results of fracking, testing and further exploration on this very large and promising block. Huacalera occupies a strategic location almost midway between our 5 northern blocks and 3 large southern blocks along the emerging shale play corridor."


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