Argenta's 3P O&G Reserves in Argentina Increase by 48%

Argenta Oil & Gas has filed updated reserves data and other oil and gas information for its financial year ended June 30, 2008, together with the report on reserves data by the independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd., on Form 51-101F2 and the report of management and directors on oil and gas disclosure on Form 51-101F3 as mandated by National Instrument 51-101.

Management is pleased to note that the reserves indicated in the 51-101F2 represent a substantial increase from the previous report, which was as of October 24, 2007. Proven and probable reserves (P1+P2) increased by 39% to $1.83 million, and proven, plus probable plus possible reserves (P1+P2+P3) increased by 48% to $31.8 million (forecast pricing, after tax and discounted at 10%). It should be noted that estimated values disclosed do not represent fair market value and that possible reserves are those additional reserves that are less certain to be recovered than probable reserves - there is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

Claudio Larotonda, President and CEO, stated, "The reserves report conservatively shows our potential in the three blocks we own in Argentina (Loma El Divisadero, Covunco and El Corte) at this early stage of development. On the Loma El Divisadero block, McDaniel & Associates has assigned contingent resources for Chorreado Member (Huitrin Formation) of up to 3.4 million barrels of recoverable oil - beyond the 1.6 million barrels of recoverable 3P reserves which clearly supports management's decision to proceed with an appraisal campaign in the near term. In addition, there is a considerable gas cap which, by itself could mean a sound market-to-resource strategy with cash flow for Argenta in the event of commercialization. However, at this point in time, McDaniel & Associates has not included gas as reserves until a later phase in the life of the field.

"In the case of Covunco and El Corte, even though Argenta is in the preliminary interpretation phase of the recently shot 3D seismic, the increase in the gas price in Argentina, along with the identification of at least two prospects allowed the categorization of 2P reserves (last year Covunco had only 3P reserves) and also increased the number of prospective resources. This analysis provides Argenta with a good starting point to revamp the value of our assets."