Testing Commenced at Apache's Argentina Shale Well

Americas Petrogas Inc. reported that the first stage of completion of the Hua.x-1 well (TD 13,450 feet), located on the 250,000 acre Huacalera block in the western region of Argentina's Neuquen Basin, was initiated in mid-February by Apache Corporation, the operator of the well. The first zone of interest being tested is a select 360 foot thick interval below 12,465 feet in the Vaca Muerta Shale, which has a gross thickness of 1,742 feet in the well. The zonal selection was made based on leading edge core and integrated petrophysical analyses carried out during late 2011. The selected interval appears to hold favorable flow potential based on the analyses. The hydraulic fracture stimulation was successfully completed in late February, placing just over 300,000 lbs of proppant in the formation. The well is currently flowing gas and "load" water from the hydraulic fracture through temporary test facilities. Testing will continue for approximately 90 days, collecting valuable fluid and reservoir data in the Vaca Muerta Shale. Careful evaluation of the current interval will be important in assessing the potential of the Vaca Muerta section in order to determine next steps. In addition to the Vaca Muerta, uphole zones of interest include Quintuco and Mulichinco, to be tested at a later date.

Americas Petrogas' partners on the Huacalera block include Apache Corporation and Gas y Petroleo.

Mr. Barclay Hambrook, President and CEO of Americas Petrogas, commented, "We are very pleased to start testing of our first Huacalera shale well and we look forward to test results, in the near future, from the Vaca Muerta as well as the Quintuco and Mulichinco. During the next 12-18 months, in conjunction with our strong joint venture partners, we will continue our investment and pursue an aggressive drilling program of up to 10 additional shale wells. These wells will focus on the world class Vaca Muerta and Los Molles shale source rocks with the main goal of increasing resources on our shale blocks."