Americas Petrogas Strikes Again at Medanito Sur Block

Americas Petrogas announced that its wholly owned subsidiary, Americas Petrogas Argentina S.A., has tested and completed the well El Calden XS-4. This is the 4th exploration well on its Medanito Sur block, in Neuquen basin, Argentina.

The well discovered light sweet crude oil (34 degree API) in the Pre-Cuyano formation, confirming the discovery made by the El Calden X-1 well. The well EC XS-4 has tested 220 bopd by natural flow on a 10 mm choke and will be put into production during the next couple of weeks for a long term production test.

The well also tested the Centenario shallow formations and discovered some oil and gas with water but this particular formation is not considered of commercial interest in this well. However the presence of hydrocarbons in the shallow Centenario formation is very encouraging for future exploration activities in the area.

Commenting on this new oil discovery, Mr. Guimar Vaca Coca, Americas Petrogas Argentina S.A.'s Managing Director, stated, "This is the 4th consecutive well discovering oil in what is believed to be commercial quantities in the Medanito Sur block, confirming the promising prospects and drilling opportunities of the block. I congratulate our experienced technical and management team on their success."