Argenta Confirms Flow of Oil, Adds Gas Discovery in Loma El Divisadero

Argenta Oil & Gas Inc. announced the successful test of the Chorreado reservoir in well LEDO x-2. Test results and log analysis in this well indicate the presence of an oil reservoir with net pay of approximately 52 feet and a gas cap with net pay of approximately 49 feet for Chorreado Member.

The results substantiate the Company's most likely estimates from interpretation of the size of the prospect from 3D seismic. This is the latest Chorreado formation discovery in the Neuquen Basin in Argentina and could hold significant reserves. The Company is currently in the process of putting the LEDO x-2 well into commercial production.

Carlos Gilardone, Argenta's reservoir engineering consultant said, "The hydraulic frac performed to overcome the formation damage incurred while drilling increased production rates. Post-stimulation LEDO x-2 well is naturally flowing on average 30 bopd and oil flow is increasing from the Chorreado Member (Huitrin Formation) at a depth of 3,451 feet. The Company has decided to stop testing and put the well into production. According to initial results and after reviewing other reservoir data, we anticipate that LEDO x-2 will produce at approximately 90 barrels of crude oil per day with a pumping unit."

Victor Linari, Chief Geologist and Geophysicist said, "The test results confirm our assumption regarding the effect of formation damage during drilling. This damage affected not only Chorreado Member but also three other formations - the Rayoso, Mulichinco and Neuquen Group, which had significant oil traces during testing and are typically productive in nearby fields. These formations will be re-tested to confirm productivity."