Americas Petrogas' Argentina Ops in 'Good Standing'

Americas Petrogas Inc. reported it is aware of recent events in Argentina regarding the government and Repsol YPF SA and none of these events have affected Americas Petrogas. The Company, in conjunction with its joint venture partners, is proceeding with its exploration, production and development plans for the next 12 to 18 months which include drilling approximately 30 conventional wells and 10 shale wells primarily targeting Vaca Muerta shale and other unconventional formations (shale oil, shale gas and liquids, and tight sands).

The Company announced it:

  • Has commenced its drilling program at Medanito Sur subsequent to receiving the exploitation license from the La Pampa province, as reported on March 19, 2012;
  • Is preparing to spud a Vaca Muerta shale well at Totoral, Yerba Buena, Bajada Colorada (90% working interest) with partner Gas y Petroleo del Neuquen. These contiguous blocks are located in the southwest region of the Neuquen Basin.
  • Is preparing to drill, with joint venture partner, ExxonMobil, its second deep well on its Los Toldos blocks that primarily targets the Vaca Muerta formation and other formations; and
  • Is expanding its crude oil facilities at Medanito Sur in order to be able to handle the expected additional crude oil to be produced from the current drilling program.

Mr. Barclay Hambrook, President of Americas Petrogas, commented, "All of our blocks are in good standing with the applicable government authorities. With our recent financing, we are well-funded. Americas Petrogas is fully committed to enhancing shareholder value through exploration and production in Argentina. We intend to expand our exploration and development with the objectives of increasing production and increasing reserves in both our conventional and unconventional oil and gas blocks. Regarding Huacalera's shale well, as previously reported, testing is ongoing."