CALGARY, ALBERTA -- (Marketwire) -- 07/21/12 -- Americas Petrogas (TSX VENTURE: BOE) ("Americas Petrogas" or the "Company") is pleased to announce that a new daily production record of 2830 bopd (or 450 cubic metres per day) was achieved on July 19, 2012 at Medanito Sur and Rinconada Norte.
This oil production record is the result of the Company's ongoing drilling program in Medanito Sur. After receiving its 25-year exploitation licence in March 2012 on Medanito Sur, Americas Petrogas intensified its drilling program. This drilling program has been very successful given the wells are both exploration and appraisal in different plays on the block. The Company's high rate of exploration success is confirming expectations of very good potential for this area of the Neuquen Basin.
The expansion of the Company's own production facilities to handle up to 6300 bopd of oil from Medanito Sur is well underway and is expected to be complete by the fourth quarter of 2012. These facilities will address the Company's existing partial restraints from storage and neighboring facilities and will allow Americas Petrogas to produce additional oil, now behind pipe, from the productive capacity of completed wells.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "The Company has made positive progress and significant production growth. This growth enhances the Company's Funds flow from Operations(1) and Reserves, which will add to our ability to further both our shale oil and gas exploration, and our conventional operations. Americas Petrogas is, today, one of the companies in Argentina with a high percentage of oil production growth."
(1) Funds flow from Operations is an additional IFRS measure, presented in the Company's consolidated statement of cash flows. Funds flow from operations is used to analyze operating performance and liquidity. Funds flow from operations is calculated as net cash generated from (used by) operating activities (as determined in accordance with IFRS) before changes in non-cash working capital. Funds flow from operations should not be considered an alternative to, or more meaningful than net cash generated from (used by) operating activities as determined in accordance with IFRS.
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 planned expansion of production facilities and the timing thereof as well as growth in oil production, reserves and funds flow from operations, should all be viewed as forward-looking statements. There can be no assurances that the Company will be able to maintain the existing levels of production or that the production will not decline.
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