CALGARY, ALBERTA -- (Marketwire) -- 07/22/12 -- Americas Petrogas (TSX VENTURE: BOE) ("Americas Petrogas" or the "Company") is pleased to announce that drilling has commenced on the Aguada Los Loros x-1 (ALL.x-1) unconventional, shale exploration well on the Los Toldos I block (98,300 gross acres or 398 square kilometers or 154 sections) located in the Neuquen Basin of Argentina. This is the second well within the farmout agreement between Americas Petrogas and ExxonMobil Exploration Argentina ("ExxonMobil") that was announced in 2011 and the fourth shale oil and gas well on the Company's assets in the Neuquen Basin. The ALL.x-1 well, a vertical well, is planned for drilling to a total depth of approximately 3300 metres (or 10,825 feet) with the principal target being the Vaca Muerta shale. The ALL.x-1 location is approximately 10 kilometers (or six miles) south of the CLN.x-2 well (drilled and completed in 1979 by YPF in the Los Toldos I block).
The first well within the farmout agreement, LTE.x-1, was drilled earlier this year on the Los Toldos II block (38,400 gross acres or 155 square kilometers or 60 sections) and the cores and logs continue to be analysed at international service labs to design the fracing and testing plan for that well.
Americas Petrogas is the Operator holding a 45% working interest in the Los Toldos blocks; ExxonMobil also holds a 45% working interest, with the remaining 10% held by Gas y Petroleo del Neuquen ("G&P").
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "We are moving forward with de-risking our shale blocks and are pleased about our progress on this joint venture with ExxonMobil and Gas y Petroleo del Neuquen. The first well has good indications and now we are onto the second well targeting the rich, thick Vaca Muerta shale formation. Upon completion of drilling of this well, the drilling rig is expected to be moved back to Los Toldos II block to drill the 3rd well under the joint venture agreement with ExxonMobil."
Select the following link for a map of the area encompassing the Los Toldos blocks: http://media3.marketwire.com/docs/718boe1.pdf.
About Americas Petrogas Inc.
Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has conventional and unconventional (shale and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil, Apache and Gran Tierra Energy, on various blocks in Argentina. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
In particular, statements (express or implied) contained herein regarding the expected depth of the ALL.x-1 well, the targeted formations of the ALL.x-1 well, the future fracing and testing of the LTE.x-1 well, and the expected drilling of the third well and the location thereof, should all be viewed as forward looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO