Americas Petrogas Makes Headway in Argentina

Americas Petrogas announced it continues to make significant progress on two blocks, Medanito Sur and Rinconada Norte, which target conventional hydrocarbons in the Eastern part of the Neuquen Basin in Argentina.

Americas Petrogas has recently drilled, tested and completed two wells with favorable results:

  • Exploratory well RN.x-1008, in the Rinconada Norte block, tested 29 degree API light oil from three intervals (gross total of 18 meters) for a total of 408 barrels (65 cubic meters) of oil per day (bopd) with 10 percent water. The well has been equipped with a beam pumping unit and has recently been put into production. This well opens a large, new area for further appraisal and development.
  • Appraisal well EJ.a-3 (El Jabali a-3), in the Medanito Sur block, tested, from one 10-metre interval, 448 bopd (71 cubic meters) of 33 degree API light oil with 1 percent water by natural flow on a 12 millimeter choke with a gas/oil ratio of 58 m3/m3. This well has recently been put into production.

In addition, Americas Petrogas has drilled and cased the following two wells on Medanito Sur block:

  • Exploratory well EJS.x-1 (El Jabalí Sur x-1) which is undergoing testing and completion.
  • Development well EJ-7 (El Jabalí 7) has been drilled to depth and awaits testing and completion.

A fifth well, Exploratory well PRN.x-2 (Puesto Ramos Norte x-2) on Medanito Sur block was uneconomic and is expected to be converted into a water disposal well.

With respect to production, the Company is currently producing from Medanito Sur and Rinconada Norte for a combined total gross production of approximately 2,150 bopd and net production to Americas Petrogas of approximately 1,900 bopd.

The Company continues to drill and complete additional wells on the two target blocks.

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.

Mr. Barclay Hambrook, President & CEO, stated, "Existing daily production from our conventional blocks is ahead of schedule for 2012 and with the continued drilling on Medanito Sur and Rinconada Norte, we will consider options for expanding our facilities in the near future."