American Petrogas Reaches Important Milestone in Argentina
Americas Petrogas has announced the formal signing and publication of the Decree incorporating Americas as partner and operator into the UTE agreement with the Government of La Pampa province (Argentina) on the Medanito Sur block along with partners Enarsa (Energia Argentina S.A.) Argentina's National Oil company, and a local private company.
As previously reported, the Medanito Sur block is 106 sq km (50,900 acres) in size and has major producing oil fields to the west (Petrobras), as well as other producing oil fields to the north and south. Americas, as operator, is entitled to receive 70% of the cash flow until recovery of capital expenditures.
Barclay Hambrook, President and CEO commented, "This is a most important milestone in Americas Petrogas history as the Company will be establishing cash flow and first production of approximately 800 bopd of sweet light (34 degrees API) crude oil."
The Company also announces that more recent analysis and integration of well and seismic data on the Medanito Sur block has led to the identification of up to 25 additional lower risk drilling targets.
Carlos Lau, Chairman stated, "America Petrogas is well positioned in Argentina's most prolific oil and gas basin of Neuquen (i.e. Argentina's Neuquen basin is the same oil and gas basin where Petro Andina and Repsol YPF are focused). Mr. Lau congratulated all Americas team members for advancing the Company to near production and cash flow stage and thanks all investors for continued support."
Americas Petrogas corporate strategy has included establishing a very large acreage position (approximately 2 million acres spread over 16 large blocks representing low and medium risk, high impact) in Argentina's Neuquen basin combined with the Company's ability to assemble a very experienced and proven successful Argentina Exploration and Development team. Americas team in Argentina is headed by Mr. Guimar Vaca Coca, Petroleum Engineer, who has demonstrated the ability to successfully operate in an entrepreneurial and low cost method. Additionally attractive to the Company is Argentina's favorable geology combined with attractive opportunities in large undrilled areas and good access to markets.